Canada: Annual CPI rises to 1% in January vs. 0.8% expected

• Anuual Core CPI in Canada rose to 1.6% in January.
• USD/CAD trades in the positive territory around 1.2700. 

Inflation in Canada, as measured by the Consumer Price Index (CPI), rose to 0.6% on a monthly basis in January from -0.2% in December, the data published by Statistics Canada revealed on Wednesday. On a yearly basis, the CPI climbed to 1% from 0.7% and came in higher than the market expectation of 0.8%.

Moreover, the Bank of Canada's Core CPI, which excludes volatile energy and food prices, increased to 1.6%, annually, during the same period and surpassed the analysts' estimate of 1.4%.

Market reaction

The USD/CAD pair showed no immediate reaction to this report and was last seen posting modest daily gains near 1.2700.