BREAKING: USDCAD gains after Canada CPI data 📌

01:30 PM BST, Canada - Inflation Data for August:

• CPI: actual -0.2% MoM; forecast 0.0% MoM; previous 0.4% MoM;
• CPI: actual 2.0% YoY; previous 2.5% YoY;
• Core CPI: actual -0.1% MoM; previous 0.3% MoM
• Core CPI: actual 1.5% YoY; previous 1.7% YoY;
• Median CPI: actual 2.3% YoY; forecast 2.2% YoY; previous 2.4% YoY;
• Trimmed CPI: actual 2.4% YoY; forecast 2.5% YoY; previous 2.7% YoY;
• Common CPI: actual 2.0% YoY; forecast 2.2% YoY; previous 2.2% YoY;

In August 2024, Canada's Consumer Price Index (CPI) rose 2.0% year-over-year—the smallest increase since February 2021 and down from 2.5% in July—primarily due to a 5.1% decline in gasoline prices. Excluding gasoline, the CPI increased 2.2%. Mortgage interest costs, while still the largest contributor to CPI growth at 18.8% year-over-year, continued to slow.

On a monthly basis, the CPI decreased 0.2%, influenced by lower prices for gasoline, air transportation, clothing and footwear (which saw a rare August decline of 0.6%), and tour packages. Grocery store prices rose 2.4% year-over-year but fell 0.2% month-over-month due to seasonal drops in fresh vegetable prices. All provinces experienced a slowdown in price growth during this period.