Canada's Inflation increases

Canada's core inflation remains stable on a annual basis

By Laila Eid | @Laila Eid | 15 August 2023

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  • The Canadian dollar declined for the tenth consecutive session

  • WTI is approaching $80 per barrel

  • The US Retail Price Index increased

WTI price dropping

West Texas Intermediate (WTI) crude oil prices experienced a notable stumble, dipping close to the $80 per barrel mark. This downturn has raised questions about the stability of the oil market and its susceptibility to external influences.

The People's Bank of China (PBoC) took a surprising step by cutting the rates of its one-year medium-term lending facility. The unexpected 15 basis point reduction to 2.50%. In stark contrast, the Russian Central Bank chose a different path by raising its interest rate to a substantial 12%, further complicating the global economic landscape.

Canada, for instance, witnessed an acceleration in its annual inflation growth, reaching 3.3%. This surge, compared to the previous reading of 2.8%, has raised concerns about the country's economic trajectory. While the Core CPI stabilized last month, maintaining a steady 3.2%, monthly fluctuations have painted a more dynamic picture. The consumer price index experienced a significant monthly increase of 0.6%, in stark contrast to the mere 0.1% uptick observed previously.

These factors highlight the intricate web of influences that can drive the oil market's movements and impact economies worldwide. Stakeholders will need to closely monitor these developments to navigate the complex path ahead.

Strong growth in US retail index

On a yearly basis, the US Retail Price Index saw a 3.17% increase, while on a monthly scale, the index surged by 0.7%. This exceeded market projections, which had anticipated a mere 0.4% rise. Similarly, the retail sales index, including its core value, displayed positive performance surpassing expectations. The index exhibited a noteworthy growth of 1.0%, outperforming the projected 0.4% expansion. Notably, this performance comes after a June reading that had indicated a more modest growth of 0.2%.