Statistics Canada

On September 17, local time, Statistics Canada reported that Canada's CPI rose 2.0% year-over-year in August, down from a 2.5% gain in July and marking the lowest level since February 2021. The monthly CPI dropped 0.2%, in line with expectations.

Employment was little changed in August (+22,000; +0.1%) while the employment rate decreased 0.1 percentage points to 60.8%. The unemployment rate rose 0.2 percentage points to 6.6%.

Real gross domestic product (GDP) increased 0.5% in the second quarter after rising 0.4% in the first quarter.

Cost-related challenges remain among the top obstacles anticipated by businesses in the third quarter of 2024, though the proportion of businesses expecting cost-related obstacles has continued to ease since the second quarter of 2024. Meanwhile, the outlook of businesses has gradually improved since the fourth quarter of 2023.

Retail sales decreased 0.3% to $65.7 billion in June. Core retail sales were up 0.4% in June.

Prices of products manufactured in Canada, as measured by the Industrial Product Price Index (IPPI), were unchanged month over month in July and rose 2.9% on a yearly basis. Prices of raw materials purchased by manufacturers operating in Canada, as measured by the Raw Materials Price Index (RMPI), rose 0.7% month over month in July and increased 4.1% year over year.

Canada's Consumer Price Index (CPI) fell to a 40-month low of 2.5% year-over-year in July, and the core CPI also eased, according to data from Statistics Canada on August 20. This paves the way for the Bank of Canada (BOC) to cut rates again.

Wholesale sales (excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain) fell 0.6% to $82.4 billion in June. Sales declined in five of the seven subsectors, with the largest decline coming from the motor vehicle and motor vehicle parts and accessories subsector. Wholesale sales were 1.0% higher in June, compared with the same month one year earlier.In volume terms, wholesale sales decreased 0.9% in June.

Manufacturing sales fell 2.1% to $69.6 billion in June, with 17 of 21 subsectors declining, led by a drop in motor vehicle parts sales, which led transportation equipment sales.