Skip to main content

Featured

Bank of Canada Treads Carefully Amid Stagflation Risks

                                                       Bank of Canada in Ottawa The Bank of Canada is adopting a cautious stance as concerns about stagflation—sluggish economic growth paired with persistent inflation—loom over the Canadian economy. Former governor Stephen Poloz explained that the central bank is currently in risk management mode , balancing the conflicting pressures of weak growth and rising prices. Poloz noted that the Bank faces a dilemma: cutting interest rates could cushion the blow of slowing growth and rising unemployment, but raising rates might be necessary to keep inflation under control. In such a scenario, the most prudent course of action may be to do very little, carefully monitoring incoming data before making any major policy moves. This balancing act reflects the uncertainty created by gl...
Post a Comment
Read more

article

Labels

Canada’s inflation rate rises in July, but food prices remain stable




According to the latest update from Statistics Canada, the country’s inflation rate accelerated in July 2023. The Consumer Price Index (CPI) rose 3.7% on a year-over-year basis in July, up from a 3.1% increase in June. The increase was mainly due to higher prices for shelter and transportation. However, food prices eased in July, with the food index rising 2.5% year over year compared with a 2.7% increase in June.

Inflation is an important economic indicator that measures the rate at which the general level of prices for goods and services is rising and, subsequently, purchasing power is falling. The rise in inflation can be attributed to various factors such as supply chain disruptions, higher demand for goods and services, and other economic factors. The easing of food prices in July is a positive sign for consumers as it means that they will have to spend less on food items than they did in June.



Labels:

Comments

Post a Comment