Canada: Annual CPI rises to 3.6% in May vs. 3.5% expected

• Annual CPI in Canada continued to rise in May.
•  USD/CAD fluctuates in a relatively tight range below 1.2200.

Annual inflation in Canada, as measured by the Consumer Price Index (CPI), rose to 3.6% in May from 3.4% in April, the data published by Statistics Canada revealed on Wednesday. This reading came in higher than the market expectation of 3.5%. On a monthly basis, the CPI remained steady at 0.5%.

Moreover, the Bank of Canada's (BoC) Core CPI, which excludes volatile food and energy prices, climbed to 2.8% on a yearly basis from 2.3% and surpassed analysts' estimate of 2.4%.

Market reaction

This report doesn't seem to be having a significant impact on the USD/CAD pair, which was last seen trading flat on the day at 1.2180.