Canada: CPI and retail sales will set the tone - TDS

Analysts at TD Securities suggest that the Canada’s CPI and retail sales will set the tone where TD is below consensus for both reports.

Key Quotes

“We look for CPI to soften to 2.5% y/y in August, reflecting a 0.4% decline on the month (market: 2.8%, -0.1%). This is largely a result of an unwind of one-offs from the prior month, which should leave core inflation measures stable near 2.0% on average.”

“Retail sales should likewise disappoint on weakness in auto sales which will hold the headline print to a 0.1% advance versus 0.6% in the ex-autos measure (market: 0.3%, 0.6%). This should leave volumes little changed or slightly lower on the month to the detriment of industry-level GDP.”