Statistics Canada reported on Wednesday the country’s consumer price index (CPI) rose 0.5 percent m-o-m in July, following a 0.2 percent m-o-m drop in the previous month.

On the y-o-y basis, Canada’s inflation rate increased 2.0 percent last month, matching the gain in June.

Economists had predicted inflation would decrease 0.2 percent m-o-m but gain 1.7 percent y-o-y in July.

According to the report, growth in the services index slowed to 2.4 percent y-o-y in July compared with a 2.8 percent y-o-y advance in June. This slowdown, however, was offset by a 1.3 percent y-o-y gain in the goods index, as the decline in gasoline prices slowed, and price growth accelerated for durable goods and food.

Meanwhile, the closely watched the Bank of Canada's core index rose 2.0 percent y-o-y in July, the same pace as in the previous month. Economists had forecast an advance of 2.3 percent y-o-y.