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.
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