Canada’s inflation rate likely dropped in August, but economists warn it might not have been by as much as you were hoping. If that same phenomenon happens in Canada, it’s a sign that high inflation could be sticking around for a lot longer than anyone — economists included — had been expecting, said TD Bank in a report. “Prices for services tend to be more sticky, raising the risk of an elongated period of high inflation,” Caranci and Orlando wrote. Having high inflation stick around for longer than expected would also complicate the Bank of Canada’s efforts to bring inflation under control, Caranci and Orlando said. “The U.S. figure suggests that food and other goods prices, including autos, may have remained strong positive contributors to inflation,” Grantham argued.

Source: thestar September 20, 2022 07:34 UTC