Investing.com – Canadian inflation jumped more than expected in January, snapping two consecutive months of declines, according to official data released on Friday.
According to the report from Statistics Canada, consumer price index (CPI) for January increased 0.9% from the previous month, compared to forecasts for a 0.3% gain and after a 0.2% decrease in December.
Year-on-year, CPI advanced 2.1% last month, compared to expectations for a 1.6% rise and December’s reading of a 1.5% gain.
Core inflation, which excludes food and energy, rose by 0.5% in January, compared to expectations for a 0.1% decline and after a prior drop of 0.3%.
Year-on-year, core CPI advanced 1.7% in January, higher than the gain of 1.6% seen at the end of 2016.
The reading may cause the Canadian central bank to move away from its previously dovish stance.
The BoC’s next monetary policy announcement is scheduled for Wednesday, March 9.
After the report, which was released simultaneously with retail sales data, USD/CAD traded at 1.3068, compared to 1.3106 prior to the release.