Canada retail sales climb, inflation falls, CAD rallies
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.