Canada's cost of living growth slowed in July for the first time in five months amid fall of gasoline prices. The inflation rate rose 2.1% from the previous year and compared to June's reading of 2.4%, Statistics Canada said. The biggest contributors to the rise of in consumer price index were shelter and food, which advanced 3.0% and 2.9%, respectively. However, gasoline prices increased modestly by just 2.1%, following the 5.4% rise a month earlier. The core CPI, which excludes eight volatile components, was up by 1.7% on a yearly basis, after soaring 1.8% in June. The Bank of Canada continued to highlight that the recently higher inflation will last for a long time, underscoring transitory factors, such as higher prices for energy, food and a lower local Dollar. On the back of news, the Canadian Dollar traded slightly lower versus the Greenback, losing 0.11% to C$1.0952.
Separately, another report showed that consumers supported the nation's economy, as retail sales increased for the sixth consecutive month, surging 1.1% to $42.6 billion in June, exceeding economists' forecasts. The main drivers appeared to be the early rounds of the FIFA World cup, which spurred sales of wine and beer, and consumers' spending on lawn and garden products. Core retail sales, excluding the auto sector, jumped five times faster than projected, soaring 1.5% to C$32.61 billion from an upwardly revised 0.3 gain in the previous month.