US retail sales flat in June; core sales surge

US retail sales flat

US retail sales remained flat in June 2024, unchanged from May, aligning with market forecasts that consumer spending would slow. This followed an upwardly revised 0.3% increase in the previous month. However, core retail sales, which exclude food services, auto dealers, building materials stores, and gasoline stations, saw a significant uptick of 0.4%, after a 0.1% rise in May.

Fed’s Daly sees growing confidence in inflation control

San Francisco Fed President Mary Daly expressed growing optimism about the Fed's progress in controlling inflation during a conference. "Confidence is growing that we are getting nearer a sustainable pace of getting inflation back down to 2%," Daly noted. She refrained from providing specific timelines or numbers for potential rate cuts, emphasizing the need for a balanced approach. "I'm not going to give time-based guidance. I'm not going to tell you when the rate cut is, how many rate cuts might come," Daly stated. She added, "As inflation comes down and the labor market slows, we must ensure that rates are held high enough to continue combating inflation but not so high that they severely impact job availability."

Canada inflation rate unexpectedly slows in June

Canada's annual inflation rate eased to 2.7% in June 2024 from 2.9% in May, defying market expectations of it remaining at 2.9%. This decline resumes the disinflation trend in Canadian consumer prices, reaching a three-year low seen in April. The result was broadly in line with the Bank of Canada's (BoC) forecasts that CPI inflation would stay near the 3% mark in the first half of the year.