Is the Canadian inflation rate really back at 2.8% ?
Is the Canadian inflation rate really back at 2.8% ?
As a foreigner who follows the Canadian news I saw on https://www.ctvnews.ca/business/economists-expect-rise-in-inflation-as-price-growth-fight-enters-new-phase-1.6517322 that the Canadian inflation rate is 2.8% which surprised me as in our country it is around 7%.
If so then how did Trudeau do it? How did he soak up all the money he printed during Covid?
Does that mean that housing and cost of living pressure has also been eased?
Would like to know your thoughts.
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Canada has been doing pretty decently when compared to other countries. It's not all about pandemic spending. Challenges on the supply side have had a huge impact globally (e.g., chip shortages, production slowdowns in China, fuel prices).
If there are supply side shortages wouldn't that make the inflation rate higher? I would imagine it would at least affect the PPI as import shortages impact supply prices and that could still trickle through to the CPI.
Sorry, I misread your initial post. There are a number of factors that can lead to differences including the overall structure of the country's economy (e.g., being more resource-based), how fiscal stimulus is spent, what supply chains are impacted and the extent, trading relationships). For Canada, a significant factor is the Bank of Canada, which is kept at arm's length from Government with a focus on monetary policy. They have a lot of interesting publications - and some regular reporting: https://www.bankofcanada.ca/publications/mpr if you're interested in digging in.