Data from Stats Canada showed that inflation unexpectedly accelerated in the last month of 2018. Sharper costs for phone services and food were offset by lower gas prices, which pushed up the average inflation rate for all of 2018 to the highest level in seven-years.
Canada’s December CPI print rose +2% y/y vs. a +1.7% rise in November. The market was expecting a no change of +1.7% on the month.
For all of 2018, CPI rose +2.3%, following gains of +1.6% in 2017 and +1.4% in 2016.
The Bank of Canada (BoC) preferred measures for inflation was unchanged compared to November, with the average annual gain for the three core-inflation gauges holding firm at +1.9%. BoC sets rate policy to achieve and maintain +2% inflation.
USD/CAD has come under pressure since the release, -0.22% to C$1.3244
Canadian Securities
Other data releases showed that foreign investment in Canadian securities accelerated in November compared to the previous month, with the focus of their purchases in government bonds.
Non-resident investors bought a net +C$9.45B in Canadian securities in November vs. the previous month, when foreigners bought a net +C$3.97B.
Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.
Dean Popplewell
He has a deep understanding of market fundamentals and the impact of global events on capital markets.
He is respected among professional traders for his skilled analysis and career history as global head
of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean
has played an instrumental role in driving awareness of the forex market as an emerging asset class
for retail investors, as well as providing expert counsel to a number of internal teams on how to best
serve clients and industry stakeholders.
Latest posts by Dean Popplewell (see all)
- Euro zone bond yields sink as German manufacturing slows - 24 July 2019
- How Boris Johnson Plans to Deliver Brexit in 100 Days - 24 July 2019
- Weak PMI’s Sink EUR - 24 July 2019