Canada. CPI (YoY). The value of the indicator has decreased from 2.3% to 1.7%

A report on this calendar event is released monthly by the Statistics Canada.

Consumer Price Index is one of the price indices which indicate the average price change for goods and services for a certain period of the country’s economy. Traditionally it shows consumer inflation.

Therefore, the rate and dynamics of consumer inflation is the main marker based on which the national regulator decides to tone down or toughen a monetary policy.

For example, the national regulator takes measures aimed to increase the value of the national currency to prevent the spreading inflation process. These measures include the interest rate hike of the central bank and other steps aimed at monetary tightening.

There are numerous subtypes of consumer price indices that are «purified» from the seasonal factors, expenses on fuel and other components. But not all published consumer price indices for each country have the same influence on the financial market. These indices should be distinguished according to the degree of importance.

Comments by the MarketCheese analysts: a decrease of the indicator value may contribute to the fall in quotes of CAD.