Data this morning showed that Canada’s annual inflation rate picked up steam last month after slowing to a near two-year low in June, as it cost more to purchase gasoline and maintain a residence.
The all-items consumer-price index in July rose +1.2% from a year earlier, following a +1% advance in the previous month. The headline print matched market expectations.
On a month-over-month basis, CPI was unchanged in July. Meanwhile, the average annual rate of core-inflation rose +1.5% in July vs. June’s gain of +1.4%.
The loonie has gathered steam outright, rallying +0.4% to C$1.2714 from C$1.2768 immediately after the data release. Major support remains intact just below the psychological C$1.27 handle at C$1.2685.
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