According to Statistics Canada, the rate of inflation (y/y) reached 2.5% in January 2012. Food and energy prices were the biggest gainers - 4,9% and 6.5% correspondingly. As a result, Canada’s consumer price index (y/y) increased by 1.6%.
However, it should be noted that the rate of inflation in 2011 was equal to 2.9%. Therefore, we can conclude that the inflation in Canada is gradually declining.
FOREX.
In the meantime, USDCAD keeps developing its long-term downtrend According to the experts of the Department of Masterforex-V Trading System , at this point the price is forming a major downswing – wave C of wave level Daily2. The closest levels of support are 0,9717/9701 and 0,9602/9553. The downtrend will go further if the price break below the MF pivot 0.9409. A change of trend can be considered only if the price breaks above the MF sloping channel and pivot 1,0524 (as shown below):
