Contrary to many other developed nations, inflation in Canada is quite solid. CPI is up 0.6% m/m, more than 0.4% expected. Core CPI is up 0.4%, more than 0.3% expected. While y/y inflation is weak due to oil prices, core inflation is steady above 2%.
On the other hand, retail sales fell short of predictions and fell in general: -0.1% in the headline number, much lower than +0.7% predicted. There was a sweetener: an upwards revision from +0.7% to +0.9%, but the disappointment is still significant. Also core sales fell by 0.3% instead of rising by 0.6%. Also here, the upwards revision was not sufficient.
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