'Tough' 6 to 12 months ahead for Canadians amid inflation, rate hikes: Expert
BNN Bloomberg
As Canadians face a double whammy of skyrocketing inflation and the largest interest rate hike seen in 24 years, one expert is warning that prices won't be coming down anytime soon.
Carleton University economics professor Vivek Dehejia says there may be "some relief" in sight, but not a whole lot, and expects a "tough six months to a year for average Canadians."
He says the pressure points that played a big role in pushing inflation to a near 40-year high "are still in play," namely ongoing supply chain disruptions, labour shortages and the war in Ukraine, which is driving fuel and food prices up, with no end in sight.
The Bank of Canada increased its key interest rate by one percentage point Wednesday as inflation in the country runs well over seven per cent.
