Canada: Annual CPI rises unexpectedly to 4.4% in April from 4.3%

• Annual CPI inflation in Canada rebounded to 4.4% in April. 
• USD/CAD hits fresh daily low after data as Loonie rises across the board. 

Inflation in Canada, as measured by the Consumer Price Index (CPI), rose to 4.4% on a yearly basis in April from 4.3% in February, Statistics Canada reported on Tuesday. This reading came in against market forecasts of a decline to 4.1%. On a monthly basis, the CPI rose by 0.7% as expected, above the 0.4% of consensus, and accelerating from the 0.5% of March. 

Additionally, the Bank of Canada's Core CPI, which excludes volatile food and energy prices, dropped to 4.1% on a yearly basis from 4.3% in March, compared to analysts' estimate of 3.9%.

Market reaction

The USD/CAD dropped from 1.3455 to level under 1.3430, reaching fresh daily lows. The Loonie rose across the board after the data.