- Annual inflation in Canada softened to 2.8% from 3.4% in May.
- USD/CAD trades in positive territory above 1.3200 after the CPI data.
Inflation in Canada, as measured by the change in the Consumer Price Index (CPI), declined to 2.8% on a yearly basis in June from 3.4% in May. This reading came in below the market expectation of 3%. On a monthly basis, the CPI rose 0.1%, compared to analysts’ estimate for an increase of 0.3%.
Moreover, the Bank of Canada reported that the monthly Core CPI, which excludes volatile food and energy prices, declined 0.1%, while the annual Core CPI stood at 3.2%, down from 3.7% in May.
Market reaction
The USD/CAD edged higher with the initial reaction to soft inflation data and was last seen rising 0.18% on the day at 1.3220.
Source: https://www.fxstreet.com/news/canada-annual-cpi-rises-28-in-june-vs-3-expected-202307181255