Data released today, Tuesday, by the Canadian Statistics Bureau revealed that the inflation index growth at the end of last February was lower than expected for the second consecutive month, with the consumer price index recording growth of only 0.3%, below currency market expectations of 0.6% growth. The previous reading of the Canadian inflation index recorded stability at zero levels of 0.0% during last January.

Also, the data showed that the annual consumer price index recorded about 2.8% during last February, which is lower than market expectations that anticipated the index to record about 3.1%, after the index had recorded a reading of 2.9% year-on-year during last January.

At the same time, the annual core consumer price index in Canada recorded about 3.2%, which is less than the expectations that indicated the index to record about 3.4%. The previous reading of the index had recorded about 3.4% in January.

In the same context, official data revealed that the overall Canadian annual inflation recorded a reading below expectations, settling at 3.1% during last February, which is lower than expectations for overall inflation to record about 3.4%, knowing that the previous reading for January showed that the Canadian inflation index recorded about 3.4%.

It is worth noting that the Canadian inflation index measures the average prices of a basket of consumer goods and services such as transportation, food, and medical care, and it is determined by calculating the average price of each item in the predefined basket. Also, the consumer price index is considered one of the most important indicators of inflation and thus affects currency evaluation. Rising prices drive central banks to raise interest rates to address high inflation.