Canadian Inflation Data - Talking PointsCanadian CPI data meets expectations at 4.7% (YoY), up from 4.4% for SepEnergy prices remain the key catal
Canadian Inflation Data – Talking Points
- Canadian CPI data meets expectations at 4.7% (YoY), up from 4.4% for Sep
- Energy prices remain the key catalysts for rising prices
- USD/CAD climbs upon the release of the data
The Consumer Price Index (CPI) rose 4.7% on a year-over-year basis in October, up from a 4.4% increase in September. This was the largest gain since February 2003. Excluding energy, the CPI rose 3.3% year over year, matching the increase in September.
On a monthly basis, the CPI rose 0.7% in October, the largest gain since June 2020 (+0.8%), when energy prices began to recover following steep declines during the early months of the pandemic. On a seasonally adjusted monthly basis, the CPI rose 0.5%.
With BoC governor Tiff Macklem suggesting that higher rates may be on the cards, a total of five 0.25% are now expected to occur throughout next year.
DailyFX Economic Calendar
Source: Refinitiv
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With energy prices contributing to the largest increase in prices, supply constraints will likely continue to weigh on consumers for the foreseeable future.
Source: Statistics Canada
Upon release of the data, USD/CAD climbed higher as investors digested the softer than expected print.
If expectations of rate hikes continue to decline, the Loonie may continue to surrender to a stronger greenback.
USD/CAD 5 Min Chart
Chart prepared by Tammy Da Costa using TradingView
— Written by Tammy Da Costa, Analyst for DailyFX.com
Contact and follow Tammy on Twitter: @Tams707
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