* Annual Inflation eases in March, core higher
* Bond prices flat across the curve
By Frank Pingue
TORONTO, April 17 (Reuters) - The Canadian dollar eased slightly versus the U.S. dollar on Friday as domestic inflation data did little to change expectations that the Bank of Canada could soon take additional measures beyond interest rate cuts to stimulate Canada's sagging economy.
The data showed Canada's annual inflation rate slowed to 1.2 percent in March from 1.4 percent in February, but the core rate closely watched by the central bank unexpectedly rose to 2 percent. [ID:nN17500487]
At 7:40 a.m. (1140 GMT), the Canadian unit was at C$1.2110 to the U.S. dollar, or 82.58 U .S. cents, down from C$1.2095 to the U.S. dollar, or 82.68 U.S. cents, right before the data.
It also remained down from C$1.2096 to the U.S. dollar, or 82.67 U.S. cents, at Thursday's close.
The Bank of Canada will announce its interest rate decision on April 21 and most primary dealers expect it to hold the key rate steady at 0.50 percent and will watch for news of central bank quantitative or credit easing measures. [ID:nTOR004440]
"Whatever the Bank of Canada was going to do would've been largely cast in stone for next week and today's numbers are not much of a factor," said Mark Chandler, fixed income strategist at RBC Capital Markets.
Chandler said the Bank of Canada is likely more focused on inflation expectations rather that current inflation figures.
Domestic bond prices were mixed across the curve and sticking close to the break-even level. (Reporting by Frank Pingue)