Statistics Canada released consumer inflation data on Friday. Annual inflation rose 2.4% in June, after an increase of 2.3% in May. June's inflation reached the highest level since February 2012.

The Bank of Canada's inflation target is 2%. The Bank of Canada Governor Stephen Poloz said this week that the current increase in inflation is temporary.

Inflation was driven by food, shelter and transportation costs. Food prices rose 2.9% on an annual basis. Shelter costs jumped 2.9% on an annual basis. Electricity prices increased by 4.2%. Gasoline prices gained by 5.4%.

On a monthly basis, consumer inflation increased 0.1% in June, missing expectations for a 0.4% rise, after a 0.5% gain in May.

Canadian core consumer inflation (excluding eight volatile products) gained 1.8% in June, after a 1.7% rise in May.

On a monthly basis, Canadian core consumer inflation fell 0.1% in June, missing expectations for a 0.4% increase, after a 0.5% rise in May.