Canada’s Inflation Rate up in September but Retail Sales Remain a Concern

According to a report from Statistics Canada, Canada’s annual rate of inflation accelerated in September. The annual rate of inflation to 0.5% in September, up from 0.1% in August and just ahead of analyst expectations of 0.4%, driven by transportation, recreation and higher prices for new housing. However, softer-than-anticipated retail sales growth in August and a sluggish estimate for September suggest some headwinds heading into the holidays. Retail sales rose by 0.4% in August from July, missing analyst expectations of a gain of 1.1%. Statscan’s preliminary estimate for September suggested the measure would be “relatively unchanged” for that month.