Canada: CPI and retail sales to be the main risk event – TDS

According to analysts at TD Securities, October CPI and retail sales for September will provide the main risk event for Canadian markets.

Key Quotes

“TD is above-consensus for CPI and looks for headline inflation to rebound to 2.4% y/y on strength in food and energy, the latter of which is expected to print above 8% y/y. Much attention will be paid to measures of core inflation where we see scope for a rebound to an average of 2.0% y/y, up 0.1pp from September.”

“Retail sales should prove more downbeat with TD and the wider market both looking for a flat print for the headline index due to a drag from weaker motor vehicle sales. Ex. auto sales should see a 0.3% gain while volumes should print at or slightly above the nominal print owing to a weaker seasonally adjusted consumer prices.”