Canada: Annual CPI in August ticked down to 1.9% vs. 2% expected

• Annual CPI in Canada drops to 1.9% in August from 2%.
• Bank of Canada's core CPI also comes in at 1.9% compared to market consensus of 2%.
• USD/CAD shows a mixed reaction to inflation data.  

According to the data published by Statistics Canada on Wednesday, inflation, as measured by the Consumer Price Index (CPI), rose 1.9% on a yearly basis in August following July's 2% reading and fell short of the market expectation of 2%. On a monthly basis, the CPI came in at -0.1% as expected.

Furthermore, the Bank of Canada's core CPI, which strips volatile food and energy prices, arrived at -0.1% and 1.9% on a monthly and yearly basis, respectively, and both readings missed analysts' estimates.

With the initial market reaction, the USD/CAD pair dropped to 1.3240 area but quickly recovered. As of writing, the pair was up 0.1% on the day at 1.3255.