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$50.9B.
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 (BoC) 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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Dean Popplewell
He has a deep understanding of market fundamentals and the impact of global events on capital markets.
He is respected among professional traders for his skilled analysis and career history as global head
of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean
has played an instrumental role in driving awareness of the forex market as an emerging asset class
for retail investors, as well as providing expert counsel to a number of internal teams on how to best
serve clients and industry stakeholders.
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