Economists are predicting an even higher reading of inflation for June as energy and food prices crept higher and economy reopened further.
The consumer price index in Canada hit a nearly 40-year high of 7.7 per cent in May. Now, economists are forecasting that number hit at least eight per cent last month.
And more increases are on the way, with several food suppliers warning grocery retailers to expect further price hikes.tap here to see other videos from our teamDerek Holt, head of capital markets economics at Scotiabank, projects inflation hit 8.9 per cent in June due to a “reopening effect.”Article content
“Oil prices rose another 4.8 per cent from May and consumer food prices have been surging in part due to higher commodity prices and acute supply chain disruptions,” the report said. Another factor that threatens to keep inflation high is rising inflation expectations among consumers and businesses, as evidenced by surveys conducted by the Bank of Canada.tap here to see other videos from our teamWith the interest rate being its only tool against inflation, the central bank is hoping it can slow domestic demand and manage inflation expectations with its supersized rate hike.
CIBC senior economist Karyne Charbonneau said the Bank of Canada’s forecast for inflation declining over the next year is hinged largely on global factors, which are outside of the central bank’s control.Article content
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Inflation climbed even higher in June amid ‘reopening effect’, economists predict - National | Globalnews.caStatistics Canada will release inflation data for June on Wednesday, a week after the Bank of Canada raised its key interest rate by a full percentage point.
Read more »
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Read more »