Canada annual CPI inflation softens to 1.9% in November vs. 2% expected

• Annual CPI inflation in Canada edged lower to 1.9% in November.
• USD/CAD trades in positive territory above 1.4250 after the data.

Inflation in Canada, as measured by the change in the Consumer Price Index (CPI), declined to 1.9% on a yearly basis in November, Statistics Canada reported on Tuesday. This reading came in below the market expectation of 2%.

On a monthly basis, the CPI was unchanged as expected, following the 0.4% increase recorded in October.

Additionally, the Bank of Canada's monthly core CPI decreased 0.1%, bringing the annual core CPI inflation rate down to 1.6% from 1.7% in October.

Market reaction

USD/CAD edged slightly lower from the multi-year high it set near 1.4300 earlier in the day. At the time of press, the pair was trading at 1.4278, rising 0.25% on the day.