Canada Core Consumer Price Index y/y measures the change in prices of a fixed basket of goods and services from the consumer perspective in the reported month compared to the same month of the previous year. Food and energy prices are excluded from the index calculation due to their high volatility.
Each element in the basket has a certain weight in the index calculation, depending on the share of spendings on its consumption.
The index is considered to be one of the key indicators of Canada's inflation. Therefore, readings above expectations are seen as positive for the Canadian dollar.