Canada’s consumer price index (CPI) reached 1.9 per cent in January thanks to higher gasoline prices, which were offset by the recently concluded tax holiday. Excluding gasoline, the CPI rose to 1.7 per cent. Inflation has been at or below the Bank of Canada’s 2 per cent target for six months in a row, ... READ MORE >
Consumer Price Index
Trump’s steel and aluminum tariffs turn uncertainty into concern for Canada
It took less than a week for the uneasy pause in trade tensions between Canada and the U.S. to reignite after U.S. President Donald Trump announced steep tariffs on steel and aluminum imports. The 25 per cent tariff, which is set to take effect on March 12, includes products from Canada — the largest ... READ MORE >
Even with pause, Trump’s tariffs and Canada’s response establish volatile new economic reality
Editor's note: This article has been updated following news of the pause in implementing tariffs. After a weekend that saw U.S. President Donald Trump impose steep tariffs on Canadian goods and Prime Minister Justin Trudeau put forward retaliatory measures, the widely feared tariff war appears on hold ... READ MORE >
Bank of Canada cuts key interest rate to 3% amid price stability, trade policy uncertainty
The Bank of Canada cut its key interest rate to three per cent on Wednesday, but trade policy uncertainty looms over Canada’s economic outlook and clouds the future rate path. The 25 basis point cut was widely anticipated as both inflation and inflation expectations moderated while interest rates ... READ MORE >
Canada’s consumer price index rises by 1.8% as tax holiday takes hold
Canada’s consumer price index rose only 1.8 per cent in December and declined 0.4 per cent on a monthly basis thanks to the tax holiday and disinflation forces throughout the economy. These developments happened even with higher base effects and gasoline prices rising above their usual seasonal ... READ MORE >
Canada’s jobs report exceeds expectations for December
Canada’s jobs report for December exceeded expectations in several ways, a credit to a resilient economy poised to grow as more rate cuts are expected from the Bank of Canada. The economy added 91,000 jobs, and the unemployment rate dropped 0.1 percentage points to 6.7 per cent. The employment rate ... READ MORE >
Trudeau’s resignation spurs uncertainty across Canada’s economy
Justin Trudeau’s resignation as Liberal Party leader and prime minister on Monday ushers in a new wave of uncertainty for the Canadian economy and financial markets. Expect delays in business decisions, sluggish hiring and subdued investments in the immediate aftermath of Trudeau’s resignation. ... READ MORE >
Canada’s job market cools as unemployment rises to 6.8%
Canada added 51,000 jobs in November, double the expected number, but the overall picture does not look rosy. The unemployment rate increased by 0.3 percentage points to 6.8 per cent — the highest since January 2017 — as more people looked for work. A slow job market finally hit wages, as wage growth ... READ MORE >
CPI: Fed to remain patient as real wages rise 1.4%
Energy and goods disinflation continue to underscore slower growth in the U.S. Consumer Price index, which increased by 0.3% on the month and by 3.1% on an annual basis, according to Labor Department data released on Tuesday. Disinflation in the energy and the goods sectors has now resulted in a ... 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 >