• CPI inflation in Canada rose at a softer pace than expected in June.
• USD/CAD continues to trade below 1.2900 after the data.

Inflation in Canada, as measured by the Consumer Price Index (CPI), climbed to 8.1% on a yearly basis in June from 7.7% in May. This reading came in lower than the market expectation of 8.4%. On a monthly basis, CPI was up 0.7%, compared to analysts' estimate of 0.9%.

The Bank of Canada's Core CPI, which excludes volatile food and energy prices, edged higher to 6.2% in 12 months to June from 6.1% in May. This print fell short of analysts' forecast of 6.7%.

Market reaction

The USD/CAD pair showed no immediate reaction to these figures and was last seen posting small daily gains at 1.2885.