Inflation expected to stay high as economists weigh risk of broadening price hikes
Economists say persistent energy costs could keep inflation above target and leave the central bank with less room to pause rate hikes.
- Statistics Canada will release its October consumer price index report on Monday, as economists closely monitor whether rising energy costs are broadening inflation beyond gasoline prices.
- The annual inflation rate reached 3.1 per cent in September as Middle East conflict drove gasoline prices higher; on October 28, The Bank raised its key interest rate to 2.5 per cent, its first increase in more than three years.
- Economist LJ Valencia with Desjardins Economics expects October inflation "similar or perhaps slightly higher" than September, while CIBC economists Avery Shenfeld and Helen Lao argue weak consumer demand may force businesses to absorb costs rather than pass them to consumers.
- RBC economist Salim Zanzana noted that energy-driven inflation hits Atlantic Canada hardest due to home heating oil usage, while economic weakness in Ontario and British Columbia keeps price pressures lower in those provinces.
- The Bank expects inflation to remain above three per cent through much of 2027, exceeding its two per cent target. The Monday data will signal whether further rate hikes are needed to contain broadening price pressures.
14 Articles
14 Articles
The Toronto Star
Inflation expected to stay high as economists weigh risk of broadening price hikes
OTTAWA - Canada's inflation rate is expected to remain elevated when new figures are released next week, but economists are divided over whether rising energy costs will fuel broader price
Inflation expected to stay high as economists weigh risk of broadening price hikes (Canada)
Canada's inflation rate is expected to remain elevated when new figures are released next week, but economists are divided over whether rising energy costs will fuel broader price increases. Statistics Canada will release its October consumer price index report Monday. The monthly report tracks chan...
Inflation Expected To Remain High As Economists Weigh Risk Of Further Price Hikes
Canada’s inflation rate is expected to remain elevated when new figures are released next week, but economists are divided over whether rising energy costs will fuel broader price increases. Statistics Canada will release its October consumer price index report on Nov. 16. The monthly report tracks changes in the cost of goods and services typically purchased by Canadian households, offering a snapshot of how prices are affecting consumers’ purc…
Last Canadian Inflation Report Before December BoC Meeting - ActionForex
We continue to look for signs of elevated energy costs generating broader price pressures, in Canada’s October inflation report next Monday (last one before the next Bank of Canada meeting). We expect headline CPI growth to ease slightly to 3% year-over-year from 3.1% in September. Energy prices mostly held steady between September and October at […]
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