Market News: Week Ending July 24, 2026

Market News: Week Ending July 24, 2026

Statistics Canada reported that the consumer price index edged 0.1% lower (seasonally adjusted) in June. On a year-over-year basis, the CPI was up 2.8%, slower than the 3.2% pace posted in May. This move in the pace of inflation was due largely to the moderation in energy prices. Specifically, the data show a 10.2% drop in gasoline prices during the month. Four of the eight main CPI subgroups moved lower during June. Transportation reported the largest monthly decline (-1.5%). Alcoholic beverages, tobacco products and recreational cannabis (+0.3%) reported the largest advance in June. The three Bank of Canada core inflation measures ranged from 1.8% to 2.6% on a year-over-year basis. CPI common, which the central bank says is most closely correlated with the output gap moved from 2.7% to 2.6% in this report. The easing of inflationary pressures due to cheaper energy was anticipated and is unlikely to influence the Bank of Canada at its next policy meeting, scheduled for September 2. 

Statistics Canada reported that retail sales rose 1.0% (seasonally adjusted) in May, following a downwardly revised 0.4% gain in April (previously reported as 0.5%). May sales were stronger in all nine main subsectors, with Gasoline (+3.1%) reporting the largest advance for a second consecutive month. On a year over year basis, overall sales were up 5.9%. The monthly advance matched the 1.0% gain that was estimated for May by the data agency in the prior report. The advance estimate for June is for a 0.4% increase in sales. Since consumer spending accounts for over 60% of Canadian economic activity, it is critical for overall GDP results. 

  The U.S. Department of Labor announced that initial jobless claims totalled 187,000 (seasonally adjusted) in the week ending July 18, a decrease of 22,000 from the previous week's revised level. The previous week's level was revised up by 1,000 from 208,000 to 209,000. The 4-week moving average was 207,500, a decrease of 7,250 from the previous week's revised average. The previous week's average was revised up by 500 from 214,250 to 214,750. These results were stronger than market estimates. 

Statistics Canada reported that its Industrial Product Price Index (IPPI) dropped 1.4% in June while its Raw Materials Price Index (RMPI) fell 6.9% during the month. A 9.1% weakening in energy prices at the industry level was the primary driver. Similarly, at the raw material price level, a 13.7% decline in crude energy product prices was the largest move down. On a year-over-year basis, the IPPI is up 12.4% and the RMPI is 20.7% higher. The IPPI and RMPI data are closely watched as they indicate relative inflationary pressures at the industry and raw materials levels and will apply those pressures to consumer prices.

Statistics Canada also announced that its New Housing Price Index (NHPI) fell 0.1% in June, following a 0.3% drop in May. The move continues the recent trend, on a year-over-year basis, the index is now down 2.3% compared to -2.4% in May, which was the weakest figure reported since the global financial crisis (-2.7% y/y in September 2009). Price weakness continues to contrast sharply with the apparent demand for housing. These results are considerably weaker than consensus expectations.

The U.S. Census Bureau announced that new-home sales totalled 628,000 units (seasonally adjusted annual rate) in June. This is 1.6% above the revised May rate of 618,000 units but is 5.6% below the June 2025 level of 665,000 units. The overall report is stronger than expected. Activity in the housing market has a significant "ripple" effect on the broader economy.

Note:
All index performance is in Canadian dollars.

IMPORTANT DISCLAIMERS
The information in this letter is derived from various sources, including CI Global Asset Management, CRA, Bloomberg, National Post, Globe and Mail, Wall Street Journal, Bloomberg, Reuters, Investment Executive, Advisor.ca, MarketWatch, Toronto Sun, The Guardian, MSN.ca and Statistics Canada at various dates. This material is provided for general information and is subject to change without notice. Before acting on any of the above, please contact me for individual financial advice based on your personal circumstances. Certain statements contained in this communication are based in whole or in part on information provided by third parties and CI Global Asset Management has taken reasonable steps to ensure their accuracy. Market conditions may change which may impact the information contained in this document.