Canadian average hourly earnings, as calculated by the BoC from the September SEPH report, climbed 4.0% y/y (up from the prior month’s 3.7% gain). Wage pressures will likely prove to be more persistent as services costs rise.
- New house prices in Canada fell 0.2% in October, the biggest drop since 2009. This measure flows directly into the housing component of the Consumer Price Index. It's likely we will see a deeper decline in that sub-category in the coming months.
- U.S. consumer and business spending had a solid start to Q4, according to recent data on retail sales and factory orders. While that's good news for the economic outlook, it's not so great for the Fed trying to dampen demand and ease inflation.