Statistics Canada reported on Wednesday the country’s consumer price index (CPI) rose 0.3 percent m-o-m in June, following a 0.5 percent m-o-m advance in the previous month.

On the y-o-y basis, Canada’s inflation rate increased 3.1 percent last month, decelerating from 3.6 percent in May. This was the lowest rate in three months.

Economists had predicted inflation would increase 0.4 m-o-m and 3.2 percent y-o-y in June.

According to the report, prices rose at a slower pace in four of the eight major components on a y-o-y basis in June, with clothing and footwear component recording the largest deceleration (+1.1 percent y-o-y in June vs. +3.9 percent y-o-y in May), reflecting a decline in prices for women's clothing.

Meanwhile, the closely watched the Bank of Canada's core index rose 2.7 percent y-o-y in June, following a 2.8 percent y-o-y climb in May.