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CAD strengthens on stronger-than-expected Canadian CPI

FXStreet (London) - Data released by Statistics Canada showed that the Canadian Consumer Price Index (CPI) rose 2.4 percent in the 12 months to October, after increasing 2.0 percent in September.

CPI gains outstripped consensus expectations of a 2.1 percent gain, while core inflation rose 0.3 percent.
The statistical agency reported that prices increased in all major components in the 12 months to October. Higher prices for shelter and food led the rise in the CPI. At the same time, larger year-over-year price increases for transportation and for clothing and footwear contributed the most to the acceleration in the CPI.

The Bank of Canada's core index rose 2.3 percent in the 12 months to October, after increasing 2.1 percent in September.

The seasonally adjusted core index increased 0.2 percent on a monthly basis in October, matching the gains in September and August.

Strengthening CAD

USD/CAD has fallen through the session, but fell sharply following the CPI release. The pair is currently trading at CAD1.224, down 0.71 percent on the session.

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