Canada’s annual inflation rate was reported to have declined in June following the effects of the reopening of the economy which has pushed consumer prices down.
The Canadian consumer price index rose 3.1% year -on -year in June based on a report from the Canadian Department of Statistics. However, the figure grew at a slower pace compared to May which recorded an increase of 3.6% per annum. The reading for June is also slightly off from market expectations which are targeting a 3.2% increase in June.
On a month -on -month basis, consumer prices rose 0.3% in June. The CAD showed a strengthening of 0.12% to the trading level of 0.7945 against the US dollar.
Market focus is directed at the minutes of the FOMC meeting. Any changes will affect the USD/CAD pair. Inflation is an important indication of concern at this time. Thus the market usually thinks that an increase in inflation will change the Central Bank's script on inflation which tends to assume that this increase in inflation is only temporary.
