Statistics Canada reported on Wednesday the country’s consumer price index (CPI) declined 0.2 percent m-o-m in June, following a 0.4 percent m-o-m advance in the previous month.

On the y-o-y basis, Canada’s inflation rate increased 2.0 percent last month, decelerating from a 2.4 percent gain in May.

Economists had predicted inflation would decrease 0.2 percent m-o-m but gain 2.0 percent y-o-y in June.

According to the report, prices rose in seven of eight major components in the 12 months to June. The energy prices (-4.1 percent y-o-y) were the only contributor to the June slowdown in the headline CPI. Excluding energy, the CPI increased 2.6 percent y-o-y in June.

Meanwhile, the closely watched the Bank of Canada's core index rose 2.0 percent y-o-y in June after gaining 2.1 percent y-o-y in the previous month. Economists had forecast an advance of 2.6 percent y-o-y.