Updates with morning prices

By Ragini Mathur

April 15 (Reuters) - Canada's main stock index rose on Tuesday as domestic inflation rate unexpectedly cooled, while prospects of automotive tariff exemptions further lifted investor sentiment.

Toronto Stock Exchange's S&P/TSX Composite Index .GSPTSE rose 0.6% to 24,010.13 points.

Domestic data showed Canada's annual inflation rate unexpectedly slowed to 2.3% in March, down from 2.6% in February, primarily due to falling gasoline and travel tour prices.

"The market is probably encouraged to see inflation coming down here in Canada to a certain degree," said Brian Madden, chief investment officer and portfolio manager at First Avenue Investment Counsel.

Despite this overall decline, core inflation measures closely watched by the Bank of Canada remained high.

The data comes just before the Bank of Canada's monetary policy decision on Wednesday; markets currently forecast a 57% chance the bank will pause after seven consecutive rate cuts.

On the tariff front, U.S President Donald Trump on Monday suggested potential exemptions for the 25% tariffs on imports of autos and auto parts from Mexico, Canada and other regions.

"I think the President is getting quite an earful from the manufacturers in the U.S., who are pointing out that the auto supply chain is very tightly integrated across Canada, the U.S. and Mexico," Madden said.

"It is very difficult to repatriate the manufacturing of literally everything to the United States."

Separately, Canadian housing starts declined 3.3% in March compared with the previous month, data from the national housing agency showed on Tuesday.

On the TSX, information technology .SPTTTK shares led the gains, rising 1.7%.

Heavy-weight financials .SPTTFS rose 0.8%, with Brookfield Asset Management BAM.TO rising 2%.

On the flip side, consumer staples .GSPTTCS and consumer discretionary .GSPTTCD were down 1% and 0.4% respectively.

Among individual stocks, women’s clothing retailer Group Dynamite GRGD.TO climbed 5.2% after reporting upbeat fourth-quarter results and announcing a share buyback program.

(Reporting by Ragini Mathur in Bengaluru; Editing by Sahal Muhammed)

((Ragini.Mathur@thomsonreuters.com;))