The rise in the headline inflation rate to 2.1% in November, from 1.4%, mainly reflects higher energy prices. More importantly, all three core inflation measures remained below the 2.0% target, with the one measure that’s most in tune with low wage pressures falling to 1.5%, from 1.6%. The latter supports our view that the Bank of Canada won’t raise interest rates early next year as markets expect.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.