The annual inflation rate in Canada accelerated slightly in April on broad-based price increases for items such as mortgage payments, vehicles and fresh vegetables.
According to Stats Canada, Canada’s CPI rose +2.0% y/y, after a +1.9% advance in March.
On a month-over-month basis, inflation climbed +0.4%, led by higher prices for gasoline and women’s clothing.
However, the Bank of Canada (BoC) preferred measures for underlying inflation moved down. The average annual gain for the three core-inflation measures came in at +1.9% m/m vs. March’s +2%.
CAD is trading at the low of the day so far, the USD is up +0.2% at C$1.3490.
U.S retail sales miss
South of the Canadian border, an important measure of consumer spending fell in April, signalling spending was sluggish stateside as Q2 begins.
Retail sales declined a seasonally adjusted -0.2% in April m/m according to the Commerce Department.
The drop fell short of the +0.2% increase the market was expecting. The disappointing print has dealers increasing the odds for a Fed rate cut sooner than later.
Dollar Stuck in Contained Vortex
Content 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 Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at email@example.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.