Inflation reached 8.1% in June in Canada, the highest since January 1983, although the pace of the increase eased compared to previous months, according to data released by Statistics Canada on Wednesday. On a monthly basis, the consumer price index rose by 0.7% in June, down from 1.4% in May. More ... READ MORE >
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Retail sales rebounded in June amid elevated inflation
Retail sales posted solid growth in June yet likely failed to offset sky-high inflation for the second straight month, government data showed on Friday. Most of the increases came from higher gasoline prices in the first half of June, not stronger demand. Retail sales rose by 1.0% in June before ... READ MORE >
The return of king dollar: The greenback in an era of inflation
The return of inflation, interest rate differentials and a quickly changing geopolitical landscape are the primary catalysts behind the recent surge in the value of the American dollar. With the Federal Reserve set to boost the policy rate by at the very least 200 basis points over the remainder of ... READ MORE >
Latest jobless claims and producer inflation show upside surprises
New filings for jobless benefits last week rose by 3.8% to 244,000—the highest level since November, according to government data released Thursday. The steady increase in new jobless claims, which are a proxy for layoffs, were in line with hiring freezes and layoff announcements coming from the ... READ MORE >
Bank of Canada raises its policy rate by 1% to tame inflation
The Bank of Canada announced a 100-basis-point rate hike on Wednesday, the largest increase since 1998, in an attempt to restore price stability amid rising inflation expectations and wage growth. The announcement brought the policy rate to 2.5%. We now expect a 75 basis-point hike at the September ... READ MORE >
U.S. June CPI: Persistent top-line inflation hits 9.1%
The past few years have been characterized by a series of economic shocks that have wreaked havoc with just about every area of the American economy. The most recent set of energy shocks has sent the top-line consumer price index to 9.1%, a four decade high, on the back of an 11.2% increase in ... READ MORE >
Inflation outpaces consumer spending for the first time this year
Personal spending declined on an inflation-adjusted basis in May as spikes in gasoline and food prices depressed consumer sentiment and dampened spending on other discretionary items. If the trend continues, we should expect spending volume in June to decline further, adding more downside risks to our ... READ MORE >
Midyear update: An economy on knife’s edge as inflation bites
Gradually, then suddenly: That is how Mike Campbell, a character in Ernest Hemingway’s “The Sun Also Rises,” answered the question on how he went bankrupt. It’s also an apt way to think about how the United States goes into a recession. While there are always signs of financial stress and ... READ MORE >
Travel industry, expecting busy summer, casts wary eye on inflation
This summer was supposed to be the season of revenge travel. With COVID-19 caseloads easing and consumers flush with savings built up during the pandemic, the travel industry was anticipating a robust season. Consumers were so eager to get out of the house that little could deter them, the thinking ... READ MORE >
U.S. retail sales fall as inflation takes a toll
U.S. retail sales declined in May as surges in energy and food prices forced consumers to reduce their spending on vehicles and other discretionary items. With inflation running hot, sales plunged on an inflation-adjusted basis, paring most of April's gains. That implies more headwinds to consumer ... READ MORE >