Canada: August CPI was lower than expected, but trend is up - HSBC

Canada’s headline and core inflation rose slightly in August, suggesting that the deceleration in inflation through 2016 is slowly passing, according to David Watt, Economist at HSBC.

Key Quotes

“Retail sales surprised to the high side on strong auto sales in July. Elsewhere sales were mixed, and real retail sales declined in the month.”

“These results don't suggest that the BoC needs to hike rates on 25 October, but leaves open the possibility of a rate hike in December.”