Next week in Canada, data to be released includes inflation, retail sales, and housing. Analysts at National Bank of Canada expect the annual rate of CPI-common to remain unchanged at 1.9%.
In Canada, a lot of attention will be on August’s consumer price index. Gasoline prices fell steeply in the month, a development which could translate into a 0.1% drop in headline prices (not seasonally adjusted). Despite this decline, the annual inflation rate should remain unchanged at 2.0%, courtesy of a positive base effect. We expect the annual rate of CPI-common to remain unchanged at 1.9%.
“In other news, strong auto sales in July likely translated into a healthy jump in headline retail sales following two lackluster prints. Ex-auto sales may also have advanced, albeit a slower pace, benefiting from rising pump prices which could have boosted outlays at gasoline stations. Still in July, manufacturing sales could have retreated again judging from the drop in factory goods exports during the month. A housing market update will also be provided by the release of August’s Teranet-National Bank Composite Home Price Index and existing home sales.”