Canada: Annual CPI rises to 2.2% in March vs. 2.3% expected

• Annual Core CPI in Canada increased to 1.4% in March as expected.
• USD/CAD pair trades in the positive territory above 1.2600. 

Annual inflation in Canada, as measured by the Consumer Price Index (CPI), rose to 2.2% in March from 1.1% in February. This reading came in slightly lower than the market expectation of 2.3%. On a monthly basis, the CPI stayed unchanged at 0.5%.

Moreover, the Bank of Canada's Core CPI, which excludes volatile food and energy prices, edged higher to 1.4% on a yearly basis in March and matched analysts' estimates.

Market reaction

The USD/CAD pair inched higher with the initial reaction to this report and was last seen trading at 1.2619, up 0.1% on a daily basis.