Inflation’s latest jump is Very bad news for the Bank of Canada and Many Many Mortgage Seekers & Holders across Country
The annual rate of inflation’s July jump could be cause for concern at the Bank of Canada, economists warn.
Annual inflation rose to 3.3 per cent nationally last month, as per Statistics Canada, which falls outside the central bank’s one-to-three per cent target range.
That’s up from June’s inflation rate of 2.8 per cent. Economists had widely expected an increase, though the report outpaced the consensus’ estimates of 3.0 per cent.
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September 6, 2023
Mainly the reason inflation increased was because energy prices saw a smaller annual decline in July than in June, as per StatCan. A monthly drop in gasoline prices between July and June last year is no longer affecting the agency’s inflation calculations.
Mortgage costs once again grew and expected to grow at a record rate thanks to the rapid rise in interest rates, as per StatCan.
The Bank of Canada is hoping restrictive interest rates will tamp inflation all the way back down to its two per cent target.
The central bank’s mandate is to achieve price stability, which it seeks to do by keeping inflation between one and three per cent.
There’s no sense sugar coating this one — it is not a good report for the Bank of Canada.
CREA source of charts says , price have advanced Canadian average Aprox 6% and in Ontario more than 3% YoY
source: Microsoft, Statscan, CREA, Opensource & Internet & News
https://creastats.crea.ca/en-CA/
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