- Stephen Poloz, Bank of Canada Governor
The Canadian Dollar rose to a one-week high against the Greenback after the data on consumer prices in Canada. The loonie jumped 0.45% to C$1.0711 versus the U.S. Dollar following the release of numbers. Statistics Canada says annual inflation continues to rise, hitting 2.4%, the highest level in two years in June after accelerating to 2.3% in the prior month, led by rising shelter, food and transportation costs. The Bank of Canada's core CPI, which strips out eight volatile products, increased 1.8% on an annual basis, also coming in line with market estimates, after advancing to 1.7% in the previous month. The gains were broad-based, with all major components recording increases, although the 5.4% rise in gas prices was lower than May's 6.3% annualized gain.
On top of that, Canadian wholesale sales jumped by an unexpectedly high 2.2% in May from April to a record C$52.58 billion, Statistics Canada data showed, powered by the largest increase in sales of motor vehicles and parts since November 2009. Market expectations were for wholesale sales to rise as much as 0.6% in May from the originally projected 1.2% increase in the previous month. Sales in the motor vehicle and parts sector surged 9.8% to a record C$9.29 billion. Excluding this sector, sales were up 0.7%.
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