Inflation increases in Canada as the consumer price index fallsDeltafx Admin 23 January 2023
The Canadian Consumer Price Index measures the average price level of a basket of goods and services purchased by consumers and reflects the rate of inflation. This index is the most important index for measuring inflation in the country. When the inflation rate changes, markets usually adjust the interest rate in parallel to meet the money supply and demand. The effect of this index on the country’s exchange rate is studied and often reversed.
The importance of this index is that an increase in consumer prices means an increase in inflation, so the central bank will also decide to increase the interest rate.
The Canadian consumer price index was released on January 17 at 13:30 and was -0.6%, which was in line with forecasts, while the value of the last period of this index was 0.1%.
After the expectations of the markets were met after the publication of this index, there was no particular change in the markets.