Last Friday, there was some encouraging news about the conflict in the Middle East. Iran said the Strait of Hormuz was reopened to commercial tankers and will remain open during the ceasefire. Meanwhile, US President Donald Trump said the two sides are getting closer to a deal. While things could change quickly, hopes are growing the conflict could be ending. Still, the conflict has had an impact on the global economy, in particular prices. This week, Canada’s inflation rate will be announced, with markets looking to see what impact the conflict has had on Canadian consumer prices.

• Canada’s inflation rate in March will be announced today. Canada’s annual inflation rate slowed to 1.8% in February but is expected to pick up in March, largely in response to higher energy prices. Core inflation measures also eased in February.
• A report on Canada’s retail sales in February will be released on Friday. Statistics Canada earlier estimated that retail sales increased in February, which would mark its second straight month of growth.
• In the US, retail sales will be announced on Tuesday. Retail sales dipped in January before recovering in February. March’s data will show if the conflict in the Mideast has had any immediate impact on US consumer spending.
• Looking abroad, the UK unemployment rate will be released on Tuesday, UK inflation rate on Wednesday, Japan’s manufacturing activity on Wednesday night and European services sector activity on Thursday.
• Notable earnings in Canada include those of Rogers Communications and Teck Resources. Key earnings in the US include those of UnitedHealth, Boeing, Tesla, American Express and Intel.

Today’s inflation report will be closely monitored to see how the conflict has immediately impacted prices in Canada. This inflation report will be the last in Canada before the Bank of Canada (BoC) makes its next interest rate decision on April 29. Currently, the BoC is expected to hold its benchmark overnight interest rate steady at that meeting.

If you would like to discuss this economic and market update or have questions about your finances and investments, please feel free to contact me anytime.