Canada Retail Sales Climb, Inflation Falls, CAD Rallies
Dean Popplewell | Sep 21, 2018 11:51
Canadian retail sales climbed in July following a decline in June, led by demand for food and higher gas prices.
Stats Canada said retail sales rose 0.3% in July to a seasonally adjusted C$50.9 billion.
Note: In June, retail sales fell by a revised 0.1%.
Ex-autos, July sales rose by a robust 0.9%, despite a decline of 2.2% at new car dealerships weighing on the overall results. However, on a price-adjusted basis, sales fell 0.1%. On a year-over-year basis, retail sales in July rose 3.7%.
Canada inflation slows in August
On the inflation front, it decelerated in Canada last month, but remained close to its seven-year high print from July. This headline print very much keeps the Bank of Canada in play for another 25 bps hike in October.
Stats Canada said that CPI rose 2.8% y/y in August, following a 3.0% increase in July.
Digging deeper, core-inflation prices rose in a range from 2.0% to 2.2%, based on the three preferred gauges used by the BoC.
CAD initial reaction saw the loonie catch a bid, to deal at C$1.28864 a new weekly high.
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