Canada's consumer price index report for January brought good news for consumers, businesses and the Bank of Canada alike. CPI dropped to 2.9%, led by lower year-over-year figures in gasoline prices. On a monthly basis, prices stayed flat. Consumers breathed a sigh of relief as grocery prices grew ... READ MORE >
Search Results for: inflation
Geopolitical tensions and risks to the inflation outlook
Just as inflation appeared to be coming under control in recent months, rising tensions in the Middle East have shaken this view and now represent the major risk to our economic and inflation outlooks. The focus of this new uncertainty centers on the energy markets, which have been roiled by ... READ MORE >
Inflation expectations remain remarkably well anchored
The inflation shock of the past three years is abating. One reason is that expectations of inflation continue to remain remarkably well anchored. The Federal Reserve’s five-year inflation forward breakeven rate-—a closely watched measure of pricing expectations—stands at 2.3%, which is below the ... READ MORE >
Revising our 2024 inflation outlook: Moving back to a 2% target
The recent easing in inflation, a clear downward trend in rents and what we think is a budding productivity boom have led us to revise our inflation forecast for the year. We now expect that the Federal Reserve’s preferred measure of inflation—the personal consumption expenditures price index—will ... READ MORE >
Spending remains strong as a key inflation gauge declines toward Fed’s target
Inflation dynamics to close out last year strongly point to a near-term return to the Federal Reserve’s 2% inflation target amid a solid labor market, strong spending and real income gains. While both top-line and core inflation are rapidly advancing toward the Fed’s target, inflation-adjusted ... 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 >
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 >
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 >
Inflation slows again, pointing to another rate pause
Inflation in October fell to its slowest pace in more than a year, solidifying the case for the Federal Reserve to hold rates steady at its next meeting in two weeks. The personal consumption expenditures price index, the Federal Reserve's favorite inflation metric, was unchanged on the month, ... READ MORE >