Inflation is cooling, but the Bank of Canada isn’t done its fight: economistsOTTAWA — Inflation in Canada is cooling faster than expected, but economists don't expect the Bank of Canada to back down from its fight just yet. Beaudry said the Bank of Canada believes people set their inflation expectations partly based on past inflation and partly on communication of central banks. The Bank of Canada has been laser-focused on bringing down inflation expectations, which were elevated in recent surveys. The latest report on inflation also shows the gap between inflation and wages is narrowing, with average hourly wages up 5.4 per cent in August compared with 7.0 per cent inflation. Shelter costs fell slightly from July to August, but remained 6.6 per cent higher than a year ago.

Source: CBC News September 20, 2022 19:09 UTC