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Canada CPI cools, pushing USD/CAD back toward 1.4050

June’s inflation eased to 2.8% year over year, with a 0.4% month over month decline, alongside lower readings across BoC core measures.

Reported · Written up by our desk · Major Pairs

Canada’s June inflation cooled, with CPI rising 2.8% year over year, down from 3.2% in May and below market expectations. On a monthly basis, prices fell 0.4%, the largest monthly decline since December 2024, according to FXStreet. FXStreet also highlighted that several underlying inflation gauges pointed to easing price pressures. Common CPI came in at 2.6% versus 2.7% previously, Trimmed CPI fell to 1.8% from 2.0%, and Median CPI eased to 1.9% from 2.1%, indicating the downtrend in underlying price pressure had resumed.

The report linked the softer inflation print to renewed currency moves. FXStreet said the Canadian dollar was on the back foot on Monday, prompting USD/CAD to revisit the 1.4050 zone after a severe pullback earlier in the month. In the CPI details, FXStreet noted that gasoline price increases slowed on a year over year basis in June versus May, while excluding gasoline CPI was unchanged month over month at 2.2% year over year. The guidance around headline versus core inflation and what it can imply for central bank policy and currency direction was also discussed in the write-up.

Latest closeGasoline (RBOB) $3.114 ▼5.7%

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