Canada's annual inflation rate dips to 3.1% in June

TORONTO (Reuters) - Canada's annual inflation rate in June dipped to 3.1% from a year-over-year increase of 3.6% in May, Statistics Canada said on Wednesday.

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Market reaction: CAD/

Link: https://www150.statcan.gc.ca/n1/daily-quotidien/210728/dq210728a-eng.htm

COMMENTARY

DEREK HOLT, VICE PRESIDENT OF CAPITAL MARKETS ECONOMICS, SCOTIABANK

"A little bit softer than expected. All the measures are still tracking above the Bank of Canada's 2% target and the upper half of the range ... but the incremental pressures seem to have eased. I don't have a great explanation for that, for why the U.S. showed a more powerful supply chain reopening effects than Canada but it could be that Canada is lagging a bit and we will see a little bit more pressure in the July reading."

(Reporting by Fergal Smith; Editing by Denny Thomas)