Over the last two years, the Bank of Canada and the U.S. Federal Reserve have taken drastic steps to cool inflation. While unprecedented interest rate hikes have taken a toll on the Canadian economy, the U.S. economy is booming. We can see this playing out with the divergence between the Canadian dollar and the U.S. […]
Tag Archives: inflation
It looks like the Bank of Canada will get what it wanted, a soft economic landing, in which growth has slowed considerably but avoided a recession. In less than two years, the Bank of Canada raised interest rates 10 times, from near zero to 5%. In June 2022, Canadian inflation hit its highest level in […]
Canada’s inflation rate unexpectedly slipped below 3% in January, into the Bank of Canada’s target range of 2% to 3%. There’s still work to do if the central bank wants to get inflation down to 2%, but to do so, it may need to keep interest rates higher for longer. That would be bad news […]
The Bank of Canada delivered a pleasant surprise when it announced that the country’s inflation rate slowed more than expected in January to 2.9%. That’s down sharply from 3.4% in December and is lower than the 3.3% reading economists were looking for and the 3.2% mark forecast by the Bank of Canada. Of particular note, […]
The December Consumer Price Index, or CPI, which measures U.S. inflation, rose 0.3% month over month. to 3.4%. This is up from a November reading of 3.1% and higher than the 0.2% month-over-month increase and 3.2% annual reading economist’s were expecting. Housing costs were responsible for more than half of the increase in prices followed […]
A lot can change in a year. In January 2023, Canada’s inflation rate stood at 5.9%, the Bank of Canada increased its overnight lending rate to 4.25%, and the TSX closed out 2022 down 1.25%. Fast forward to January 2024, and the inflation rate is down, but still too high at 3.1%, the overnight lending […]
Statistics Canada announced that Canada’s inflation rate slowed to 3.1% in October, that’s down significantly from the 3.8% reading in September. There is a caveat to that drop in inflation, however. The big deceleration was mainly a result of lower gas prices, which were down 6.4% over September and down 7.8% from where gas prices […]
Canada’s inflation rate unexpectedly dipped in September to 3.8%. That’s down from 4.0% in August. The 3.8% figure is below the 4.0% figure economists were expecting inflation to come in at. The cooling of Canada’s inflation was pretty broad based too, with prices falling for some travel-related services, durable goods, and groceries. The latter of […]
Bank of Canada Governor Tiff Macklem said that the central bank’s aggressive interest rate policy is working at bringing down inflation. After raising its key lending rate 10 times since the start of 2022, from 0.25% to 5.0%, Canada’s inflation rate has retraced from a 39-year high of 8.1% in June 2022 to 4.0% today. […]
Canada’s inflation rate unexpectedly jumped in August for the second month in a row. This increases the odds that the Bank of Canada could increase interest rates at least once more this year. After pausing its overnight lending rate earlier in September, investors were optimistic that it would hold interest rates at 5%. Will The […]
