Canada inflation climbs, while retail sales decline

Canadian inflation climbs

Canadian inflation rose last month at a slightly faster-than-expected pace, pushed higher by increased costs associated with mortgage payments and fresh vegetables.

According to Stats Canada, Canada’s CPI climbed +1.5% y/y in February, up from a +1.4% rise in January. Market expectations were for a +1.4% increase.

Meanwhile, the Bank of Canada (BoC) preferred measures for underlying inflation was unchanged m/m, with the average core-CPI rate for February at +1.83%.

Canada Retail Sales Decline

Canadian retail sales fell for a third consecutive month in January on decreased demand for new and used cars.

Stats Canada said retail sales decreased -0.3% in January m/m to a seasonally adjusted C$50B. Market expectations were for a +0.4% increase.

In volume terms, January sales were unchanged from the previous month.

On a y/y basis, January retail receipts rose +1.1% vs. December’s +1.5% annual advance.

The level of retail sales now sits at a nine-month low and mostly weighed down by the auto component. Sales at motor vehicles and parts dealers fell -1.5% to C$13.47B. Ex-auto’s, Canadian retail sales advanced +0.1%.


The CAD is now trading at the low of the day, down -0.37% at C$1.3416

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. 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.
Dean Popplewell