If you were hoping Canada’s inflation rate would calm down soon, the Bank of Canada has bad news.
According to a press release released today, the country’s central bank said it could be well before 2022 before the interest rate drops back to a target of around 2%.
“The recent rise in CPI inflation was expected in July, but the main forces pushing prices up – rising energy prices and pandemic bottlenecks – now appear be stronger and more persistent than expected, ”the bank wrote in the statement.
“The Bank is closely monitoring inflation expectations and labor costs to ensure that temporary forces pushing up prices do not become part of ongoing inflation,” he said. added.
Speaking at a press conference, Bank of Canada Governor Tiff Macklem said a combination of “supply disruptions and associated cost pressures, as well as energy prices higher “were driving up costs around the world.
“We know that higher prices are difficult for Canadians, which makes them more difficult to cover their bills,” Macklem said. “I want to assure you that inflation is not going to stay as high as it is today, although it will take a little longer to come down.”
The rate of inflation recently hit its highest level in almost 20 years, pushing up food and gas prices, leading many Canadians to change the way they shop as a result.
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