Canada’s consumer price index (CPI) reached 1.9 per cent in January thanks to higher gasoline prices, which were offset by the recently concluded tax holiday. Excluding gasoline, the CPI rose to 1.7 per cent. Inflation has been at or below the Bank of Canada’s 2 per cent target for six months in a row, ... READ MORE >
consumer spending
Even with pause, Trump’s tariffs and Canada’s response establish volatile new economic reality
Editor's note: This article has been updated following news of the pause in implementing tariffs. After a weekend that saw U.S. President Donald Trump impose steep tariffs on Canadian goods and Prime Minister Justin Trudeau put forward retaliatory measures, the widely feared tariff war appears on hold ... READ MORE >
Bank of Canada cuts key interest rate to 3% amid price stability, trade policy uncertainty
The Bank of Canada cut its key interest rate to three per cent on Wednesday, but trade policy uncertainty looms over Canada’s economic outlook and clouds the future rate path. The 25 basis point cut was widely anticipated as both inflation and inflation expectations moderated while interest rates ... READ MORE >
Canada’s consumer price index rises by 1.8% as tax holiday takes hold
Canada’s consumer price index rose only 1.8 per cent in December and declined 0.4 per cent on a monthly basis thanks to the tax holiday and disinflation forces throughout the economy. These developments happened even with higher base effects and gasoline prices rising above their usual seasonal ... READ MORE >
U.S. retail sales continued to grow in December
American consumers ended the year on a strong note, with sales at retail stores, restaurants and online continuing to show significant gains in December. Total retail sales increased by 0.4%, following an upward revision to 0.8% from 0.7% in November, according to Commerce Department data released on ... READ MORE >
Canada’s jobs report exceeds expectations for December
Canada’s jobs report for December exceeded expectations in several ways, a credit to a resilient economy poised to grow as more rate cuts are expected from the Bank of Canada. The economy added 91,000 jobs, and the unemployment rate dropped 0.1 percentage points to 6.7 per cent. The employment rate ... READ MORE >
Rising demand helps U.S. retail sales top forecasts
Retail sales topped forecasts in November, growing at a robust pace for the third month in a row. Sales at retail and online stores increased by 0.7%, according to the Census Bureau on Tuesday. Car sales were behind the increase, yet sales also looked strong in other key components. The control ... READ MORE >
September retail sales top forecasts
American consumers remained upbeat about the economy in September as spending at retail stores and online exceeded consensus forecasts. Retail sales for all items increased by 0.4% while the control group grew by 0.7% in September. Our forecasts had called for a 0.5% increase for both numbers, so the ... READ MORE >
Canada’s consumer price index hits 2 per cent target
Canada's consumer price index hit the pivotal 2 per cent target in August as inflation continued a downward trajectory, according to Statistics Canada data released on Tuesday. The drop is thanks to lower gasoline prices compared to a year ago. The Bank of Canada will need to continue rate cuts amid ... READ MORE >
Fed’s key inflation gauge shows price stability as consumers hit the accelerator
Disinflation, strong household consumption and incomes rising above the rate of inflation continue to be the defining narrative of the U.S. economy as it heads into the second half of the year. With the Federal Reserve’s preferred measure of inflation, the personal consumption expenditures index, ... READ MORE >