Canada Core Consumer Price Index - MoM

The Canadian dollar climbed for the fourth time in five days against its US counterpart, as core Canadian inflation rose faster than forecast in August, while a dearth of economic data in the United States kept speculation to a minimum.

The loonie, as the Canadian currency is called, climbed to an intraday high of 0.9181 US. It would subsequently consolidate at 0.9157, US, advancing 0.15 percent. The loonie has been on an upward climb since Monday, supported by strong Canadian manufacturing data, stimulus measures in China and a renewed commitment for low interest rates from the US Federal Reserve.

The Canadian dollar has advanced 1.6 percent against the greenback this week.

In economic data, Canadian consumer prices were up across the board in August, as all 12 components of the closely watched consumer price index increased.

Consumer prices rose 2.1 percent in the 12 months through August, unchanged from the previous month, Statistics Canada reported today in Ottawa. Economists forecast an identical increase.

So-called core inflation, which strips away volatile elements such as food and energy, advanced 0.5 percent in August, following a 0.1 percent drop the previous month. Year-on-year, this translated into a gain of 2.1 percent. Economists forecast an annual...