Elevated inflation is looking a lot less transitory, and might actually accelerate. That’s what the average business expects, according to the Canadian Federation Of Independent Business (CFIB) Business Barometer in September. The regular survey found Small and medium sized businesses expect costs to soar. Since higher business costs are passed to consumers, this may mean […]
It seems a lot of people are confused about inflation, including the head of Canada’s central bank. Today, Bank of Canada (BoC) governor Tiff Macklem addressed the US Council on Foreign Relations. His address mostly focused on global currency, but it was the media Q&A where things got interesting. Over three questions, he made several […]
High inflation might seem like a global phenomenon these days, but that appears to be a media bias. The August Consumer Price Index (CPI) for G7 countries shows not all have elevated levels of inflation. Canada and the US are showing significantly higher headline inflation than their peers. Initially it was sold as transitory, but […]
Elevated levels of inflation may stick around longer than central banks have let on. The Organization for Economic Co-operation and Development (OECD) released its 2021 summer outlook. The intergovernmental agency for advanced economies revised Canada’s inflation forecast higher. Not a little either, they now see double the rate of expected inflation next year. The agency […]
Canadians are seeing higher inflation and one of the country’s biggest banks thinks you might want to get used to it. BMO senior economist Douglas Porter wrote to capital markets customers to clarify a position in a national newspaper. The outlet had isolated his quote, and used it to downplay concerns about inflation. In reality, […]
Canadian inflation looks less transitory by the day, as costs surge higher and higher. Statistics Canada (Stat Can) data shows the consumer price index (CPI) made a sharp climb in August. Growth is now well in excess of the base effect, and not just an illusion. One of the biggest drivers has been shelter costs, […]
Young Canadians aren’t interested in joining the trades, and it’s a big problem. RBC Economics took a look at skilled workers, and the anticipated shortage. The labor shortage isn’t just due to a large demographic cliff though. Not enough young adults are attracted to the field, nor are new immigrants. This squeeze can result in […]
Canada’s top banker made an unusual move and began explaining his actions in the news. In an opinion piece last week, the Bank of Canada (BoC) governor Tiff Macklem didn’t let his work speak for itself. Instead, he took the unusual step of writing his own defensive opinion piece. Let’s take a quick dive into […]
Canadian mortgage rates are so low, how could you not buy a little more house? The rate of interest for a mortgage in Canada recently fell below the rate of inflation. This rarely happens, and the last time real mortgage rates were this negative was over 40 years ago. That was in the middle of […]
Never has it been so obvious that government data on housing costs don’t reflect the cost of buying. Home prices are on a tear, and while CPI’s shelter component is high, it’s miles away from soaring home costs. That’s because of the way it’s measured, says BMO chief economist Douglas Porter. Here’s his breakdown on […]
