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Annual inflation in Canada, as measured by the Consumer Price Index (CPI), declined to 3.1% in June from 3.6% in May, the data published by Statistics Canada revealed on Wednesday. This reading came in lower than the market expectation of 3.2%. On a monthly basis, the CPI edged lower to 0.3% from 0.5% in May.
Moreover, the Bank of Canada's (BoC) Core CPI, which excludes volatile food and energy prices, arrived at 2.7%, compared to analysts' estimate of 2.4%.
The USD/CAD pair inched higher after this report and was last seen posting small daily losses at 1.2584.