Canada August CPI due next
Canadian headline inflation is expected to increase by 0.2% m/m and 1.5% y/y in the figures published at the bottom of the hour. It is a pick-up from a flat monthly reading of 1.2% y/y increase in July.
The figures have been well below target for months, but the Bank of Canada believes that strong growth and a tight labour market will inevitably lead to higher inflation.
A strong number to add to their conviction.
Note that the BOC uses three basic measures: Common, pad, and the median to show the underlying trend. These are key.
On retail sales, the consensus is 0.2% m/m to rise 0.4% m/m rise in ex-autos. It will be interesting to see if the turbulence of the housing in canada has affected the spending.