Canada CPI Preview: Confirmation of ongoing inflationary risks would be positive for the CAD – Commerzbank

The new Canadian inflation figures for February will be released today. Economists at Commerzbank analyze how the Consumer Price Index (CPI) report could impact the Loonie.

Bloomberg consensus is currently subject to considerable uncertainty

Economists surveyed by Bloomberg are looking for a non-seasonally adjusted increase of 0.6% MoM, which should translate into a seasonally adjusted increase of around 0.26%. 

If today's figures confirm the ongoing inflationary risks, the market may push back its rate cut expectations a bit. This would certainly be positive for the CAD.

However, it should also be noted that the Bloomberg consensus is currently subject to considerable uncertainty. The number of participants in the survey for Canadian inflation data has fallen significantly in recent years. And even last month, the survey was expecting a solid increase, and in the end, prices actually fell. This is something to keep in mind for today.