He Canada’s Consumer Price Index (CPI) grew at an annual rate of 2.7% in JuneStatistics Canada reported. The reading is lower than the 2.9% increase recorded in May. On a monthly basis, inflation fell 0.1% after rising 0.6% the previous month. The figure is below market expectations, which had expected a 0.1% increase.
The Bank of Canada’s core CPI, which excludes food and energy, rose 1.9% year-on-year from 1.8% previously. It fell 0.1% on a monthly basis after rising 0.6% in May.
Canadian dollar reaction
The Canadian dollar has reacted lower following the data, as the moderation in inflation could favour the Bank of Canada (BoC) to announce an interest rate cut at its next meeting. The USD/CAD has shot higher on the release, rising from 1.3666 to 1.3707, a fresh two-week high. The pair is trading at the time of writing above 1.3703, gaining 0.14% on the day.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
