- Toronto-Dominion
Canada's annual inflation rate slowed in March as lower gasoline prices offset increases in food and shelter costs, while a robust data on retail sales offered a positive sign for first-quarter economic growth. Canada's all-items consumer-price index advanced 1.3% from a year earlier, Statistics Canada said. The March annual core-inflation rate, which strips out volatile components such as some food and energy prices, surged 2.1%. That followed a 1.9% advance the previous month and was ahead of the 1.7% expectations. Measured on a monthly basis, the consumer-price index climbed 0.6%, the highest in almost a year, while core inflation rose 0.7%, compared with the 0.4% forecast. Prices for food jumped 3.6% on an annual basis, following a 3.9% gain the previous month. Prices for food purchased from stores increased 4.0% compared with the same month last year, while prices for shelter rose 1.1%. Offsetting the gains were a 1.0% annual drop in Statistics Canada's transportation index, which includes gasoline. Clothing and footwear prices slid 0.4%.
Canadian retail sales had a surprise gain in February with strength in most categories led by motor vehicle dealers. Sales increased 0.4% to C$44.2 billion, Statistics Canada reported. Motor vehicle and parts sales rose 1% to C$11.5 billion on the month, and have soared 15.3% over the last 12 months.
© Dukascopy Bank SA