As expected, the Bank of Canada on Wednesday maintained its policy rate at 5 per cent and continued its restrictive monetary policies. At the same time, though, its public statements signed a more dovish tone. In softening its rhetoric, the central bank noted the slowdown in the global and domestic ... READ MORE >
Inflation
Retail sales and industrial production point to a strong end of the year
Resilience not recession is the right "R" word to describe the American economy in December. Wednesday's data from the Commerce Department showed retail sales blowing past expectations while industrial production volume stayed solid. The upside surprises, together with a robust labor market, prompted ... READ MORE >
The price of eggs and public sentiment
Inflation is receding and the labor market is as healthy as it has been since the 1950s. Wages are higher in inflation-adjusted terms. Everyone who wants a job either has one or can find one quickly. And with the economy growing at healthy rate over the past year, one would think that Americans ... READ MORE >
Canada’s inflation accelerated to 3.4% in December
December’s Consumer Price Index report for Canada is another bump in the road in the path toward price stability. The overall index rose by 3.4% on a year-over-year basis in December, up from 3.1% in November, primarily because of the base effect, or comparisons to a year ago. Prices dropped from ... READ MORE >
December CPI: Sticky service and housing prices illustrate the difficult last mile in inflation fight
The December Consumer Price Index captures both the broader disinflation taking place inside the goods sector and the persistent inflation inside the service sector. Each generates its own economic and policy narratives that carry implications for the economy in a year of a closely fought ... READ MORE >
U.S. income and spending see strong gains as year nears an end
This past year was a remarkable one in the American economy as inflation eased, employment gains remained rock solid and household consumption advanced at a robust pace. November’s personal income and spending report, released by the Commerce Department on Friday, showed a 0.4% monthly increase in ... READ MORE >
Consumer confidence ends the year on a positive note
Consumer confidence rose in December to the highest level in five months as sentiment on both the current and future situations improved markedly. The data from the Conference Board released on Wednesday adds to a string of economic data in recent months that supports further sustained expansion in the ... READ MORE >
Inflation in Canada stayed steady at 3.1%
Canada’s inflation in November failed to make progress, staying steady at 3.1%. But core inflation apart from housing and food continued to trend lower and came in around 3.5%, markedly lower than earlier this year. Food and housing remain primary drivers of inflation. On a year-over-year basis, ... READ MORE >
Fed signals end of rate hikes and projects cuts in 2024
The Federal Reserve signaled at its meeting on Wednesday that it is done raising its policy rate and is poised to reduce it by 75 basis points next year, with more cuts after that. The Fed also reduced its inflation forecast for next year to 2.8% from 3.3%, and to 2.4% from 2.5% for 2025, which ... READ MORE >
U.S. November Consumer Price Index: Inflation continues to abate
Inflation continued to abate in November as energy prices declined by 2.3% and gasoline prices dropped by 6%, resulting in a 0.1% monthly advance in the Consumer Price Index and a 3.1% annual increase. Over the past three months, the decline in top-line inflation implies that the overall rate is ... READ MORE >