Statistics Canada released consumer price inflation data on Friday. Canadian consumer price inflation increased 0.1% in July, in line with expectations, after a 0.2% gain in June.

On a yearly basis, the consumer price index rose to 1.3% in July from 1.0% in June, missing expectations for a 1.4% increase.

The consumer price index was partly driven by higher food and automobiles prices.

Food prices climbed 3.2% in July, while automobiles prices increased 2.5%.

Gasoline prices dropped 12.2% in July from the same month a year earlier.

The Canadian core consumer price index, which excludes some volatile goods, was flat in July, after a flat reading in June.

On a yearly basis, core consumer price index in Canada was up to 2.4% in July from 2.3% in June, in line with expectations.

The Bank of Canada's inflation target is 2.0%.