Canada: Annual CPI rises to 4.1% in August vs. 3.9% expected

• Annual CPI in Canada rose more than expected in August.
• USD/CAD trades in the negative territory below 1.2700.

Annual inflation in Canada, as measured by the Consumer Price Index (CPI), advanced to 4.1% in August from 3.7% in July, the data published by Statistics Canada revealed on Wednesday. This reading came in higher than the market expectation of 3.9%. 

Moreover, the Bank of Canada's Core CPI, which excludes volatile food and energy prices, edged higher to 3.5% from 3.3% on a yearly basis, compared to analysts' estimate of 3.7%.

Market reaction

The USD/CAD pair inched lower with the initial reaction to this report and was last seen losing 0.1% on the day at 1.2680.