Canadian Data Disappoints Markets

Friday saw a raft of disappointing data releases from Canada, raising further questions regarding the economic health of the Canadian economy already reeling from the sharp declines in the price of oil.

CPI

In a report released by Statistics Canada on Friday, both core consumer price inflation and regular consumer price inflation posted surprise increases. Canadian core CPI increased to a seasonally adjusted figure of 0.3%, rising considerably from the -0.4% recorded in the in December. The figure also surpassed analyst’s expectations for a 0.2% increase.

Meanwhile, regular Canadian consumer price inflation rose to 0.2% on a monthly basis, higher than the -0.5% recorded in the preceding month. This came after analysts had been expecting Canadian consumer price inflation to show a decline of -0.1% for January.

Retail Sales

Whilst the consumer price inflation posted surprise increases, the Canadian retail sales figures disappointed markets, posting a surprise decrease.

Retail sales in Canada fell to -2.2% in January, down from the 1.7% recorded in December. This disappointing set of figures came after analysts had been expecting retail sales to post a decline of only -0.6% last month.

Meanwhile, Canadian core retail sales fell to a seasonally adjusted -1.6% in January, a considerable decline from the 1.0% recorded in December, with December’s figure having already been revised down from 1.1%. This came after analysts had been expecting Canadian core retail sales to decline -0.5% for January.

The following two tabs change content below.

Daniel Simmons