CPI warmer than expected; Retail sales; Housing Data By Investing.com
By Ketki Saxena
Investing.com — The biggest story for the Canadian economy last week was inflation data for March. Statistics Canada said the CPI (consumer price index) rose 6.7% year-on-year in March, with inflation across the board in all categories, including essentials such as energy, groceries and housing.
Other important data from the Canadian economy last week included Canadian international securities transactions, retail sales and the commodity price index.
The week also included several reports on Canadian housing, including housing starts, existing home sales, current supply and two home price indexes: from the Canadian Real Estate Association and from Teranet/ National Bank.
Due to the high volume of housing data this week, this week’s article includes a special edition of the Canadian Econ Weekly Wrap: Canadian Housing Week’s Recap
Summary of the week:
Canadian International Securities Transactions, February: International transactions generated a net inflow of funds into the Canadian economy of approximately C$17.12 billion, indicating a slowdown in foreign investment for the second consecutive month. Non-resident investors bought a net worth of 7.44 billion Canadian securities, compared to 13.54 billion Canadian dollars the previous month. Canadian investors sold C$9.68 billion net of foreign securities, compared to a net sale of C$11.44 billion the previous month.
Canadian CPI, March: The Canadian CPI rose 6.7% year over year in March, higher than the 6.1% expected by economists and 5.7% in February. Inflationary pressures were widespread, including in consumer staples such as housing, food and energy. Gasoline prices rose 11.8% in the month and 39.8% from a year earlier. On a month-to-month basis, prices for heating oil and other fuels rose 19.9%. Year over year, prices for fuel oil and other fuels rose 61.0% in March. Canadians paid 8.7% more year-over-year for groceries. Goods inflation stood at 9.2%, while services inflation reached 4.3%.
Retail sales, February: Canadian retail sales rose month-over-month in February on higher clothing and gasoline sales, rising 0.1% in February to C$59.90 billion adjusted seasonally, beating market expectations for a decline of 0.4% in the month. In terms of volume, or adjusted prices, February retail sales fell 0.4%
Industrial Product Price Index, March: The Industrial Product Price Index rose 4.0% month over month in March 2022, the largest monthly change on record since the series began in 1956. other, the index rose 18.5%, its biggest increase since December 1974.
Raw Materials Price Index, March: The index, which measures the prices of raw materials purchased by manufacturers operating in Canada, rose 11.8% on a monthly basis in March 2022 and 42.7% year-on-year. The increase was mainly due to higher prices for refined petroleum products (including liquid biofuels), which rose 18.8%. Year over year, prices increased by 65.7%.