Inflation has likely slowed, but economists warn we’re not out of the woods yet

Core prices are still bubbling up and will likely not peak until later this year.

Economists at Canada’s biggest banks believe the country’s inflation rate cooled for the second month in a row in August, with consensus expectations from Bloomberg surveys for Sept. 20’s CPI announcement running at 7.3 percent, down from the 7.6 percent annualized pace reported in July.

The anticipated decline comes as global supply chain disruptions are beginning to ease and lower commodity prices are working to cool the consumer price index, the economy’s main gauge on the growth of the cost of goods. Those easing pressures have led the Royal Bank of Canada’s economics team to conclude that the recent burst of inflation likely topped out at 8.1 per cent in June.

The anticipated decline comes as global supply chain disruptions are beginning to ease and lower commodity prices are working to cool the consumer price index, the economy’s main gauge on the growth of the cost of goods. Those easing pressures have led the Royal Bank of Canada’s economics team to conclude that the recent burst of inflation likely topped out at 8.1 per cent in June.

Leave a Reply

Your email address will not be published.