As Canadian inflation slows, the cost of essentials, such as food and rent, offers pointers as to whether it will return sustainably to the Bank of Canada's 2% target, say economists, as those items are key drivers of inflation expectations.
Canada's consumer price index report for December, due on Tuesday, is expected to show headline inflation cooling to 6.3%, its lowest annual rate since last February, from 6.8% in November.
Price increases for food and rent, as well as those for gas, which have already slowed, are highly visible, so they tend to have a pronounced impact on inflation expectations. "One eye is on wage growth, which is strong but not too bad at the moment, but then this other idea on the price inflation for essentials that could keep wage demands high, as it affects inflation expectations."
Food prices rose 10.3% year-over-year in November and shelter was up 7.2%, while the December labor force survey showed growth in average hourly wages of 5.1%.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Attempted bank robber caught after leaving phone at bank, police sayAn attempted bank robber in Florida was arrested after she left her phone at the bank, allowing police to learn her identity, officials said.
Read more »
Bank of America profits rise; bank warns of slowing economyBank of America says its fourth-quarter profits rose slightly from a year ago, as higher credit costs and potentially bad loans more than offset a sharp rise in interest revenue.
Read more »
Valentino Hosts Cocktail Party at Maxfield in L.A.Stephanie Hsu, Maddie Ziegler, Luna Blaise, Chiara Aurelia, Kathryn Newton, Diego Boneta, Abigail Cowen, Ella Balinska and Chike Okonkwo came out for the Maison Valentino Essentials cocktail party at Maxfield in West Hollywood.
Read more »
The 5 key autumn/winter staples from Red's fashion directorThis season's essentials for your capsule wardrobe
Read more »
Canadian firm unearths new details on how its engine ended up powering Iranian drone in UkraineBombardier determined the part was not sold to Iran or Russia by any of its authorized distributors, suggesting a more shadowy supply chain
Read more »
Canadian man aims for Guinness world record for most marathons ran in a yearIt’s a gamble, but one that’s worthwhile to Ben Pobjoy.
Read more »