Inflation in Canada, as measured by the change in the Consumer Price Index (CPI), rose by 2.9% on a yearly basis in March from 2.8% in February, Statistics Canada reported on Tuesday. This reading came in above market expectations. On a monthly basis, the CPI went up by 0.6%.

The annual Core CPI, which excludes volatile food and energy prices, was up by 2.0% in the same period, down from 2.1% in the previous month.

According to Statistics Canada "Shelter prices continued to apply upward pressure in March, with the mortgage interest cost and rent indexes contributing the most to the year-over-year gain in the all-items CPI."

In addition, "Prices for services ( 4.5%) continued to rise in March compared with February ( 4.2%), driven by air transportation and rent, outpacing price growth for goods ( 1.1%) which slowed compared with February ( 1.2%) on a yearly basis.

• The Canadian Consumer Price Index is expected to have risen by 3.1% YoY in February.
• The BoC shows no rush to lower its interest rate.
• The Canadian Dollar maintains its multi-day lows against the US Dollar around 1.3540.

Canada is slated to unveil the always-relevant inflation-related figures on Tuesday. Statistics Canada will release the Consumer Price Index (CPI) for the month of February, with expectations pointing towards a year-on-year rise of 3.1% in the headline print, slightly surpassing January’s 2.9% increase. Monthly projections anticipate a 0.6% increase in the index compared to the previous month's flat reading.

Alongside the CPI data, the Bank of Canada (BoC) will release its Core Consumer Price Index gauge, which excludes volatile elements like food and energy costs. In January, the BoC Core CPI indicated a monthly uptick of 0.1% and a year-on-year rise of 2.4%.

These statistics will be closely monitored as they could influence the trajectory of the Canadian Dollar (CAD) and shape outlooks regarding the Bank of Canada's monetary policy. Speaking about the Canadian Dollar (CAD), it has shown weakness against the US Dollar (USD) in past sessions and presently hovers around multi-session lows well past the 1.3500 yardstick