TORONTO – The Canadian dollar was slightly lower as new data showed that inflation well under control in June while oil prices hit a 15-month high.

The loonie was down 0.07 of a cent to 96.31 cents US as Statistics Canada said that inflation came in at an annualized rate of 1.2 per cent, in line with economist expectations and up from a low rate of 0.7 per cent the previous month.

On a month over month basis, prices rose at a seasonally adjusted 0.3 per cent.

Commodity prices advanced with August crude on the New York Mercantile Exchange up 94 cents to US$108.98 a barrel. Crude prices have advanced this week to the highest level since March 2012, underpinned by another sizable decline in U.S. oil supplies. U.S. crude inventories fell by 6.9 million barrels last week, bringing the three-week decline to 27.1 million barrels.

September copper rose two cents to US$3.15 a pound while August bullion was up $5 to US$1,289.20 an ounce.

In other economic news, traders also took in news that China is ending controls on bank lending rates in a move toward creating a market-oriented financial system to support economic growth.

Banks currently lend mostly to state industry rather than the entrepreneurs who create China’s new jobs and wealth. Allowing banks to negotiate their own rates with borrowers could channel more credit to private enterprise.