New inflation data suggest Bank of Canada needn't worry about raising rates anytime soon

“Overall, inflation has not become a bigger concern for Canadians, and the pandemic has not dramatically changed consumers’ views on inflation,” the central bankThis advertisement has not loaded yet, but your article continues below.That’s an important conclusion. Inflation can be a self-fulfilling prophecy. If households and executives anticipate higher costs, they will demand higher prices for goods, services and labour.

Overall, inflation has not become a bigger concern for Canadians, and the pandemic has not dramatically changed consumers’ views on inflation“Inflation is always going to be something you can’t ignore,” Chris Fowler, chief executive of Canadian Western Bank, said in a recent interview. Bank of Canada’s leaders “don’t want to be in the position that we’re in today, and have been for a number years with minimal inflation,” he said. “Their stimulus, in some ways, was to stop deflation.

However, the central bank and Statistics Canada realized early on in the pandemic that spending patterns had changed. They came up with a supplementary measure of the CPI that puts greater weight on the things being bought during the lockdowns, such as groceries and bigger houses in the suburbs, and less weight on things that were essentially off limits, like airline tickets.Article content

Look out! It’s generally believed that when the experts tell you not to be concerned, it’s time to be concerned

The bottom line is, if you expect that things will never cost less, you won't be disappointed.

My gas and food bill disagrees with you

Interesting read, I think inflation is real but I also think most CDN's believe the Gov will just bail them out in the future if things get too tough. We have bread this entitlement culture! Citizens can make bad decisions by over extending themselves just like our CDN gov.

inflation is at least 10% on everything right now except hotel room. Food, gas, insurance, dentist, optometrist all above 10% inflation, what's going down?

Clearly the Bank of Canada hasn't tried to buy plywood or lumber lately..

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