Canada CPI falls to 5.2% year on year
  • Prior report 5.9% (were expecting 6.1% at the time)
  • CPI MoM 0.4% vs 0.5% expected.
  • Prior MoM 0.5%
  • food prices rose 10.6% year-over-year for the seventh consecutive month of double digit increases
  • energy prices fell -0.6% year-over-year following a 5.4% increase in January. Gasoline prices fell -4.7% the first yearly decline since January 2021

Core measures

  • CPI YoY core 4.7% vs 4.8% expected.
  • Prior core YoY 5.0%
  • CPI core MoM 0.3% vs 0.1% last month
  • Median 4.9% versus a 5.0% last month
  • Trim 4.8% vs 5.1% last month
  • Common 6.4% vs 6.6% last month

The CPI year on year is at its lows level since April 2020.

The year-over-year deceleration in February 2023 was due to a base-year effect, for the second consecutive month, which is attributable to a steep monthly increase in prices in February 2022 which rose +1.0%.

For the full report on inflation in Canada click here

The USDCAD has moved higher after the tamer report. The move leaves key support near the 50% fo the move up from February 20 low. The price is also back above a swing area between 1.3657 to 1.3665. That area is now close risk for traders thinking the low is now in place. On the topside, the broken 38.2% comes in at 1.3700. The intraday high reached 1.36983. The 100 hour MA is at 1.37174. Those levels would be targets on more upside momentum now...

USDCAD moved higher after tamer Canada inflation