Loonie Takes Flight After Inflation Report

Canadian Inflation Report
  •   Canada Jul CPI-Common +1.4% y/y
  •   Canada Jul CPI-Median +1.7% y/y
  •   Canada Jul CPI-Trim +1.3% y/y
  •   Canada Jul Total CPI +1.2% y/y
  •   Canada Jul Total CPI Forecast at +1.2%
  •   Canada Jul Total CPI +0.0% from June

Data on Friday showed that Canada’s annual inflation rate picked up steam last month after slowing to a near two-year low in June, as it cost more to purchase gasoline and maintain a residence.

The all-items consumer-price index in July rose +1.2% from a year earlier, following a +1% advance in the previous month. The headline print matched market expectations.

On a month-over-month basis, CPI was unchanged in July. Meanwhile, the average annual rate of core-inflation rose +1.5% in July vs. June’s gain of +1.4%.

The loonie has gathered steam outright, rallying +0.4% to C$1.2714 from C$1.2768 immediately after the data release. Major support remains intact just below the psychological C$1.27 handle at C$1.2685.

To catch up with Bank of Canada news here.