Has inflation peaked? Economists expect slow down in coming months
BNN Bloomberg
As we near the Bank of Canada final policy rate decision on the year, some economists say we could start seeing inflation decline in the months ahead.
Inflation remained steady in October at 6.9 per cent year-over year, far from the Bank of Canada’s two per cent target. The central bank has delivered six consecutive rate hikes this year, all done with the goal of bringing inflation under control. Its next policy rate decision will take place on Dec. 7.
Peter Dungan, an economics professor at the University of Toronto’s Rotman School of Management, said in a phone interview on Monday that it is “certainly possible” inflation has peaked.
The beginning of the year was marked by large increases to the cost of oil and food, which both feed into the consumer price index (CPI), Dungan said. Since the CPI measures current costs against the previous year, Dungan said inflation could abate as food and fuel prices recede.
