Canada’s annual rate of inflation slowed to 1.7 per cent in April, Statistics Canada reported on Tuesday, down from 2.3 per cent in March.

Despite the annual pace of inflation cooling last month, Statistics Canada says shoppers continue to see the cost of groceries rise at a faster rate.

The Canadian dollar strengthened against its U.S. counterpart on Tuesday as investors slashed bets on a Bank of Canada interest rate cut next month after domestic data showed underlying inflation heating up.