Canada June CPI 2.8% y/y versus 3.0% expected

• Prior was 3.0%
• CPI m/m % vs +0.3% expected
• Prior m/m reading was 0.4%
• Gasoline prices -% vs -18.3% y/y in prior month
• Gasoline prices % m/m vs -0.8% prior month
• Ex gasoline +4.0% y/y vs +4.4% prior
• Food +8.3% y/y vs +8.3% y/y prior
• Mortgage interest costs 30.1% y/y vs 4.9% increase in May
• Goods inflation +1.4% vs +2.1% y/y prior
• Services inflation +4.2% vs +4.9% prior

Core measures:

• BOC core y/y 3.2% vs 3.5% expected (prior 3.7%)
• BOC core m/m -0.1% vs +0.4% prior
• Median 3.9% vs 4.0% prior
• Trim 3.7% vs 3.8% prior
• Common 5.1% vs 5.2% prior

There’s no reason for the Bank of Canada to continue to raise interest rates. USD/CAD is up to 1.3218 from 1.3200 on this data but some of that move is as a result of broad US dollar strength on a strong US retail sales report released at the same time.

Separate PPI data from Canada:

• -0.6% m/m vs -0.2% expected
• Prior PPI -1.0% (revised to -0.6%)

This article was written by Adam Button at http://www.forexlive.com.