Canada June CPI 1.5% y/y vs 1.7% y/y exp

• The May reading was 1.2%
• There is a skew in the year-over-year figures due to a very soft reading last June
• Core June CPI 2.0% y/y vs 2.3% exp (prior 1.8%)
• -0.4% m/m vs -0.2%
• Core -0.1% m/m vs -0.4% exp

A very soft reading last June put an upward bias into the year-over-year figures but the figures were softer than expected and USD/CAD has rallied to 1.0124 from 1.0100. Gasoline, clothing and transportation were all large drags.