Canada: Annual CPI drops to 0.1% in July vs. 0.5% expected

• CPI in Canada stayed unchanged on a monthly basis in July. 
• Annual CPI slumped to 0.1% and missed analysts' estimate of 0.5%.
• USD/CAD continues to trade with modest losses near mid-1.3100s.

Inflation in Canada, as measured by the Consumer Price Index (CPI), rose 0.1% on a yearly basis in July, the data published by Statistics Canada showed on Wednesday. This reading followed June's print of 0.7% and came in lower than the market expectation of 0.5%. On a monthly basis, the CPI was unchanged.

Meanwhile, the Bank of Canada's (BoC) core CPI, which excludes volatile food and energy prices, edged lower to 0.7% from 1.1% in June.

Market reaction

These figures don't seem to be having a significant impact on the CAD's performance against its rivals. As of writing, the USD/CAD pair was down 0.13% on a daily basis at 1.3150.