Canada: Annual CPI in June climbs to 0.7% vs. 0.2% expected

• Annual CPI in Canada rose more than expected in June.
• USD/CAD pair stays in red below 1.3450 after inflation report.

Inflation in Canada, as measured by the Consumer Price Index (CPI), rose 0.7% on a yearly basis in June, the data published by Statistics Canada showed on Wednesday. This reading came in higher than the market expectation of 0.2%. On a monthly basis, the CPI arrived at 0.8%.

Meanwhile, the Bank of Canada said the core CPI, which excludes volatile food and energy prices, was 1.1% and 0.4%, on a yearly and monthly basis, respectively.

Market reaction

The USD/CAD pair largely ignored these figures and was last seen losing 0.22% on a daily basis at 1.3428.