Inflation in Canada jumped far more than expected in January and ends two-month series of declines in consumer prices. The data from the Canadian Statistics Office showed that the consumer price index rose by 0.9% mom in January. In December CPI had decreased by 0.2% and economists excpected growth within 0.3% during the first month of 2017.
On an annual basis, inflation accelerated from 1.5% in December to 2.1% in January. Expectations were for a 1.6% annual inflation.
The core inflation, which excludes food and energy, is at 0.5% on a monthly basis in January, after December was in negative territory of -0.3%. Forecasts were for a 0.1% rise in underlying consumer prices.
The core annual inflation accelerated from 1.6% in December to 1.7% in January.
The data could make the Canadian central bank to change its cautious tone, as the regulator meets on March 1st to discus further movement of monetary policy.