Canada’s Retail Sales Grow 1.1 Percent in June

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Canada’s Retail Sales Grow 1.1 Percent in JuneCanada’s retail sales jumped 1.1 percent in June, beating economists’ estimates. It was also the sixth successive month of gains.

Ottawa-based Statistics Canada reported that sales rose to C$42.6 billion ($38.9 billion). Economists in a Bloomberg News poll had forecasted a growth of 0.3 percent. Sales, adjusted for motor vehicle and parts category, surged 1.5 percent, beating market forecast of a 0.3 percent advance.

Purchases rose in eight out of the 11 categories totaling 71 percent of all retail sales. Retail sales in May grew at a revised 0.9 percent, up from the initially reported 0.7 percent gain. The volume of sales, adjusted for effect of price changes, surged 0.6 percent in June.

Meanwhile, Mexico’s consumer prices advanced more than expected in the first half of August. Consumer-price inflation rose 0.19 percent in the first two weeks, beating the mean forecast of 0.16 percent. Though the annual inflation rate declined to 4.07 percent, it was well above the 1 percent to 4 percent official target range.

“Inflation was a bit stronger than expected,” Marco Oviedo, a Mexico City-based chief Mexico economist at Barclays Plc, told Bloomberg News “It’s still in line with expectations that inflation is going to be very close to 4 percent through the third quarter.”

Core prices, which are adjusted for the volatile food and energy costs, rose 0.15 percent in the first two weeks of August, exceeding analysts’ estimate of 0.12 percent.

Data released on Thursday showed that gross domestic product in the second quarter rose more than expected due to a recovery in demand in US, which is Mexico’s biggest export market. The economy grew 1 percent in the three months through June from the previous quarter, reported the national statistics institute.To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.

To contact the reporter of this story; Jonathan Millet at john@forexminute.com