* Canadian dollar rises 0.2% against the greenback
* Canada's annual inflation rate holds steady at 2.2% in December
* Canadian wholesale trade falls 1.2% in November
* Canadian bond prices dip across the yield curve
TORONTO, Jan 22 (Reuters) - The Canadian dollar strengthened against the greenback on Wednesday ahead of a Bank of Canada interest rate decision, but some of the loonie's gains were given up after domestic data showed inflation running close to the central bank's target.
Canada's annual inflation rate held steady at 2.2% in December, Statistics Canada said, while the average of the Bank of Canada's three measures of core inflation was 2.1%. The central bank aims to keep inflation at 2%. data from Statistics Canada showed that wholesale trade fell for the third time in five months in November, declining 1.2%. Analysts had predicted wholesale trade would hold steady. data could support a view that the domestic economy slowed in the fourth quarter.
The Bank of Canada is due to update its outlook for the economy at 10 a.m. (1500 GMT), when it is expected to leave its benchmark interest rate on hold at 1.75%. BOCWATCH
At 9:15 a.m. (1415 GMT), the Canadian dollar CAD=D4 was trading 0.2% higher at 1.3047 to the greenback, or 76.65 U.S. cents. The currency traded in a range of 1.3036 to 1.3091.
The gain for the loonie came as updates from China about the spread of a new flu-like coronavirus raised hopes the outbreak would be contained, boosting world stock markets .WORLD . is a major exporter of commodities, including oil, so its economy could be hurt by a slowdown in the global economy.
U.S. crude oil futures CLc1 were down 1.70% at $57.39 a barrel as a market surplus forecast by the International Energy Agency (IEA) outweighed concern over disruptions to Libya's crude output.
Canadian government bond prices were lower across the yield curve, with the two-year CA2YT=RR down 1.5 Canadian cents to yield 1.630% and the 10-year CA10YT=RR falling 12 Canadian cents to yield 1.530%.