INSTANT VIEW-Canada's annual inflation rate increases to 1.9% in June

TORONTO, July 15 (Reuters) - Canada's annual inflation rate rose to 1.9% in June, meeting analysts' expectations, as increases in the price of automobiles and clothing and footwear pushed the index higher, data showed on Tuesday.

Market reaction: CAD/

Link: https://www150.statcan.gc.ca/n1/daily-quotidien/250715/dq250715a-eng.htm?HPA=1&indid=3665-1&indgeo=0

COMMENTARY

DEREK HOLT, VICE PRESIDENT OF CAPITAL MARKETS ECONOMICS, SCOTIABANK

"It's just the latest piece of evidence to keep the Bank of Canada on hold after 83,000 jobs (added in June) and no clarity on how fiscal policy and trade policy will evolve. I can't see the bank doing anything for a while here."

"You are still getting these core measures well above the comfort zone and their target range. Everything aligns in keeping the Bank of Canada on hold in my opinion."

DOUG PORTER, CHIEF ECONOMIST AT BMO CAPITAL MARKETS

"Ever so slightly better than we were expecting, but really not soft enough to prompt the Bank of Canada off the sidelines. I think that's really the main message. The fact that core inflation is pretty much locked in at around 3% is a bit of an issue for Bank of Canada rate cut prospects. The headline number was fine, roughly in line with consensus expectations, if not a little bit better. But, you know, core is just too sticky. And our measure of the breadth of inflation showed no improvement in the latest month."