By Ketki Saxena
Investing.com -- Major Canadian economic data this week included hotter than anticipated CPI (5.1% increase in January), and key housing data including record-setting new home sales (1% m/m), housing inventory (-11% m/m) and housing price growth (2.9% m/m and 28% y/y, as per the MLS Home Price Index). Other important Canadian data included wholesale trade and manufacturing sales.
At a provincial level, key announcements included Ontario’s latest economic and fiscal update. Highlights include $2.3 billion of new investments in response to the Omicron variant. For the fiscal year 2021-22, Ontario is now projecting a deficit of $13.1, an $8.4 billion improvement from the previously forecast deficit in the Fall Economic Statement, primarily due to improved economic performance driving higher revenue than previously anticipated.
Other economic events of note included the meeting of G-20 finance ministers and central bankers, including Canadian Finance Minister Chrystia Freeland. The group’s statement agreed on a cautious and coordinated rise in interest rates or unwinding other measures in order to minimize the impact on global , particularly developing countries, and global financial markets.
Canadian Economic Data: The Week's Recap
Consumer Price Index: CPI accelerated to 5.1% year-on-year (y/y) in January, from 4.8% in December. Inflation is broad based and elevated across categories.
Wholesale trade: Wholesale sales rose 0.6% in December to $76.2 billion, marking the 5th consecutive month of growth. The month was marked by strong movement in automobiles, including parts and accessories, as well as machinery and equipment.
Manufacturing sales: Canadian manufacturing sales rose by 0.7% m/m in December, slightly lower than Statistics Canada’s estimate of an 0.08% increase.
Home Sales and Inventory: Canadian existing home sales increased in January, rising 1% m/m to 55k units. This marked the highest level of activity since May 2021. New listings plunged 11% m/m. Just 1.6 months of inventory were available for purchase in January, tied with December for the lowest on record.
Housing starts: Housing starts in Canada decreased 3 percent m/m to 230,754 units in January of 2022, missing market expectations of 245,000 units
Teranet Home Price Index: Canadian home prices climbed 1.3% from December, or 16.6% y/y
The MLS® Home Price Index (HPI), another benchmark of house prices, rose 2.9% m/m and 28% y/y- both records
All currency is CAD, unless noted otherwise.