The Canadian Department of Statistics just released a report on Canada’s inflation rate in February. The latest report shows that the annual inflation rate increased to 1.1% in February. That is an increase of 1.0% per annum compared to January.
The surge was driven by higher gas price increases in February. Analysts initially expected that the year -on -year inflation rate to rise to 1.3% in February.
The US dollar strengthened against the Canadian dollar by 0.22% to the level of 1.2466 as of 9.00 p.m.
Markets now continue to focus on the FOMC meeting early Thursday morning. The expectation is that Powell will likely try to allay market concerns with a more optimistic statement on the recovery driven by the launch of the Covid-19 vaccine and the government’s fiscal stimulus.
