Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
Canadian Inflation Rate 4.8% as Expected - Markets Look to BoC Next Week

Canadian Inflation Rate 4.8% as Expected - Markets Look to BoC Next Week


Core Inflation Rate = 4% vs 3.5% (Estimate)

Inflation Rate YoY = 4.8% vs 4.8 (Estimate)


Canadian CPI has arguably become one of the most intriguing data points of 2022 thus far, not far behind the US inflation print because markets currently expect as many as six rate hikes this year – that’s two more than the Fed and Bank of England (BoE).

Canadian CPI

Source: DailyFX econ calendar,

Customize and filter live economic data via our DaliyFX economic calendar

Overly hawkish expectations can prove to be misguided, as we saw in November of last year when the Bank of England decided against a rate hike despite markets having already priced one in. The Pound subsequently dropped as markets recalibrated future expectations.

Trading Forex News: The Strategy
Trading Forex News: The Strategy
Recommended by Richard Snow
Trading Forex News: The Strategy
Get My Guide

Highlights of the Report from Statistics Canada:

  • On a monthly basis, the CPI fell 0.1% in December, following a 0.2% increase in November. This was the first monthly decline since December 2020, as gasoline prices fell in response to lower demand amid the spread of the Omicron COVID-19 variant.
  • Prices rose in all eight major components on a year-over-year basis in December. Transportation and shelter prices contributed the most to the increase in the CPI.
  • YoY, prices for services rose at a faster pace than on December when compared to November.
  • Statistics Canada

USD/CAD Immediate Reaction

USD/CAD dropped slightly after the release of the data but has since then recovered to levels seen just before the release. All eyes now shift to the BoC meeting next Wednesday where markets have priced in nearly 90% of a 25 basis point hike.

USD/CAD 5 Minute Chart

Source: IG

--- Written by Richard Snow for

Contact and follow Richard on Twitter: @RichardSnowFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.