Canada: Annual CPI edges higher to 1.1% in February vs. 1.3% expected

• Annual Core CPI in Canada slumped to 1.2% in February.
• USD/CAD pair clings to daily gains around 1.2460 after the data.

Inflation in Canada, as measured by the Consumer Price Index (CPI), was 0.5% in February, the data published by Statistics Canada showed on Wednesday. On a yearly basis, the CPI edged higher to 1.1% from 1% but fell short of the market expectation of 1.3%.

Moreover, the Bank of Canada's (BoC) Core CPI, which strips volatile energy and food prices, declined to 1.2% annually from 1.6% in January and missed analysts' estimate of 1.4%.

Market reaction

The USD/CAD pair doesn't seem to be paying much attention to these figures. As of writing, the USD/CAD pair was up 0.23% on a daily basis at 1.2473.