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TSX ends up 0.1% at 27,922.85

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Consumer staples sector rises 1.4%

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Telco stocks rise for eighth straight day

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Air Canada ( ACDVF ) shares fall nearly 3%

(Updates at market close)

By Fergal Smith

Aug 18 (Reuters) - Canada's main stock index edged

higher on Monday as consumer-related shares notched gains and

investors awaited Canadian inflation data that could guide

expectations for a Bank of Canada interest rate cut.

The Toronto Stock Exchange's S&P/TSX composite index

ended up 17.36 points, or 0.1%, at 27,922.85, with the

index trading not far off the record closing high it posted last

Wednesday.

Canada's consumer price index report for July is due on

Tuesday, with economists expecting the annual rate of increase

in consumer prices to ease to 1.8% from 1.9% in June.

"If we get a very light inflation number, that might suggest

a Bank of Canada rate cut, which would be positive for every

stock basically just about," said Lorne Steinberg, president,

Lorne Steinberg Wealth Management Inc.

The Canadian central bank has left its benchmark rate on

hold at 2.75% since March but has left the door open to further

rate cuts if upward price pressures from trade disruptions are

contained.

Consumer staples rose 1.4% and consumer

discretionary added 0.8%, while the communication

services index was up for an eighth straight day.

"We're looking for some improvement finally to

(telecommunication company) earnings going forward, and so for

us the sector is very cheap and the dividend yields are

sustainable," Steinberg said.

The energy sector was down 0.4% even as the price

of oil settled nearly 1% higher at $63.42 a barrel.

The materials group also lost ground, ending 0.3%

lower, as gold and copper prices dipped.

Shares of Air Canada ( ACDVF ) fell nearly 3% as the third day of

a flight attendants' strike led to the company suspending its

third-quarter and full-year 2025 guidance.