Relief as inflation slows and economy rebalances
Good news for everyone feeling the pinch of inflation. Statistics Canada’s latest figures for the Consumer Price Index, released yesterday, show that costs are increasing at a slower pace than they have since August 2021.
“Year-over-year CPI growth fell sharply in March, which will likely bring relief to Canadian consumers and policymakers alike,” the Conference Board of Canada said in a news release. “And the outlook for the Canadian dollar may be in better shape in the wake of banking turmoil in the United States. A stronger currency could insulate Canadians from higher import prices.”
The slowing rate is a sign that efforts by the Bank of Canada are working. The bank has used its tools to raise interest rates and discourage spending. The effort is expected to contribute to a short-lived recession in Canada this summer. The bank’s forecast is for inflation to fall to 3% by mid-year before eventually getting back to its 2% target next year.
Register Now: June 8 at Victoria Conference Centre Bank of Canada’s latest Economic Progress Report
“Year-over-year CPI growth fell sharply in March, which will likely bring relief to Canadian consumers and policymakers alike,” the Conference Board of Canada said in a news release. “And the outlook for the Canadian dollar may be in better shape in the wake of banking turmoil in the United States. A stronger currency could insulate Canadians from higher import prices.”
The slowing rate is a sign that efforts by the Bank of Canada are working. The bank has used its tools to raise interest rates and discourage spending. The effort is expected to contribute to a short-lived recession in Canada this summer. The bank’s forecast is for inflation to fall to 3% by mid-year before eventually getting back to its 2% target next year.
Register Now: June 8 at Victoria Conference Centre Bank of Canada’s latest Economic Progress Report
