Canada August CPI due next
Canadian headline inflation is expected to climb 0.2% m/m and 1.5% y/y in numbers released at the bottom of the hour. That's a pickup from a flat monthly reading a 1.2% y/y rise in July.
The numbers have been well-below target for months but the Bank of Canada believes that solid growth and a tight labor market will inevitably lead to higher inflation.
A strong number will add to their conviction.
Note that the BOC uses three core measures: Common, trim and median to view the underlying trend. Those are key.
On retail sales, the consensus is for a 0.2% m/m rise and a 0.4% m/m climb ex-autos. It will be interesting to see if the turmoil in Canadian housing has affected spending.
