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CANADA FX DEBT-C$ little changed as inflation data weighs on greenback

* Canadian dollar at C$1.2470, or 80.19 U.S cents

* U.S. crude prices rise 1.60 percent

* Bond prices higher across a flatter yield curve

TORONTO, Oct 13 (Reuters) - The Canadian dollar was little changed against its U.S. counterpart on Friday, clawing back earlier losses as oil prices rose and as data showing weaker-than-expected U.S. underlying inflation weighed on the greenback.

The U.S. dollar retreated against a basket of major

currencies after a modest reading in the core CPI, which is likely to worry Federal Reserve officials who have been engaged in a vigorous debate on the inflation path. In contrast, the Bank of Canada pulled the trigger with two rate increases since July, trusting its projections and betting that stronger growth will help push inflation to its target by the middle of next year. Prices of oil, one of Canada's major exports, were boosted

U.S. crude prices were up 1.60 percent at $51.41 a

barrel.

At 9:25 a.m. ET (1325 GMT), the Canadian dollar was

little changed at C$1.2470 to the greenback, or 80.19 U.S. cents. The currency traded in a range of C$1.2450 to C$1.2512. Officials from Mexico and Canada said that talks underway to renegotiate the North American Free Trade Agreement (NAFTA) should not add a so-called "sunset clause" that would force renegotiation of the $1 trillion pact every five years.

The resale of Canadian homes grew 2.1 percent in September from August, led by gains in Toronto and Vancouver, suggesting national sales may be stabilizing after cooling sharply in the spring, the Canadian Real Estate Association said. Canadian government bond prices were higher across a flatter yield curve in sympathy with U.S. Treasuries. The two-year rose 5.6 Canadian cents to yield 1.551 percent and

the 10-year climbed 56 Canadian cents to yield 2.044

percent.

(Reporting by Fergal Smith; Editing by Bernadette Baum)