Inflation Jumps Higher Again in Canada - Forex News by FX Leaders
Inflation reverses in Canada

Inflation Jumps Higher Again in Canada

Posted Wednesday, April 17, 2019 by
Skerdian Meta • 1 min read

Inflation has been pretty soft in Canada during the second half of 2018. We have seen it decline in four out of the last five months last year as crude Oil prices tumbled lower during that period. But in February, we saw a sudden jump higher by 0.7%. Actually, it wasn’t so sudden because Oil prices reversed higher at the start of this year. helped by production cuts from the OPEC+ mob. Today’s CPI report was even better, so here are all the numbers for March:

 

Canadian Economic DataActualExpectedPrevious
CPI MoM0.7%0.7%0.7%
Core CPI MoM0.3%0.7%
Common CPI YoY1.9%1.9%1.9%
Median CPI YoY2.0%1.8%1.8%
Trimmed CPI YoY2.1%1.8%1.9%
Trade Balance-$2.9B-$3.5B-$4.2B

 

CPI jumped 0.7% higher again in March while core CPI increased by 0.3%, which is still pretty good for cor inflation. But most importantly, Median CPI YoY jumped two points higher while expectations were that it remained unchanged and Trimmed CPI which is similar to core CPI jumped to 2.1% against a decline to 1.8% expected.

The trade report was positive as well, showing a decline in the deficit during February. The CAD jumped around 60 pips higher after these reports were released. USD/CAD dived lower but the support level below 1.33 which has been holding for nearly three weeks is still holding for the time being.

 

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About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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