The decline in the Bank of Canada’s preferred measure of core CPI inflation to a two-year low of 1.8% in August, from 2.1%, shows that the upward pressure on prices from last year’s slump in the dollar is now beginning to fade. At the same time, however, the modest 0.3% m/m rise in retail sales volumes in July means that GDP is still on track for a decent rebound in the third quarter, which should ease any immediate worries the Bank has about the economy’s health.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services