TORONTO (Bloomberg) - Most Canadian stocks rose after US consumer confidence and prices topped projections, offsetting reports that retail sales increased less than estimated and a slump in commodities.

Taseko Mines Ltd. jumped 7.6 percent, the most in the Standard & Poor's/TSX Composite Index, after posting second- quarter profit that beat estimates. Gildan Activewear Inc. climbed 1.8 percent, helping consumer discretionary shares rally to the second-biggest advance of 10 industry groups in the gauge. Finning International Inc., the Caterpillar dealer with operations in Canada, gained 5.3 percent after being raised to "buy" from "hold" at Desjardins Securities Inc.

The S&P/TSX advanced 4.65 points, or less than 0.1 percent, to 11,528.25 at 4 p.m. in Toronto. The Canadian measure has lost 2.3 percent since August 6, the biggest five-day drop since the week ended July 2. Among S&P/TSX stocks, 140 rose, 82 fell and seven were unchanged.

"The fight over the last few months is over where the economy is going," said Jennifer Radman, who helps oversee C$1 billion ($958 million) as a money manager at Caldwell Investment Management Ltd. in Toronto. "You have the recession camp on one side and on the other side they're saying maybe things aren't so bad.

"It's hard to tell who's going to win the battle, but I think the economy will be fine."

The S&P/TSX has declined 1.9 percent this year as US unemployment above nine percent offset optimism about stronger- than-forecast corporate earnings. In that time, the Thomson Reuters/Jefferies CRB Index of commodities dropped 5.1 percent.

Inflation accelerated at the fastest pace in a year and exceeded the 0.2 percent price gain projected by the median forecast of economists surveyed by Bloomberg, while confidence among US consumers rose in August, a sign the biggest part of the economy may soon stabilise. Sales at US retailers rose less than forecast in July, indicating a lack of jobs is prompting Americans to hold back on spending.

"People are still a little cautious on what they've seen on the economic front," said Sadiq Adatia, who helps manage C$12 billion ($11.6 billion) as chief investment officer at Russell Investment Canada in Toronto. "We'll eventually see a recovery. How quickly it's recovering, that's what's in debate right now."

Gildan Activewear jumped 1.8 percent to C$30.85. The clothing maker was raised to "Action List Buy" from "Buy" at TD Newcrest Inc.