We found out that Inflation is now at 2011 Levels, at 3.0% on a year-over-year basis. So what? Remember the Bank of Canada’s ideal rate is 2.0%, so this will most likely reinforce another Bank of Canada rate increase (in October). Now the B of C’s calculated Inflation is only 2.0% , but I don’t think they can ignore this kind of jump.
I haven’t commented on inflation for a while, but this report is important, for a lot of reasons. With the tariff wars that are going on, inflation is going to continue to rise (IMHO), and that will mean higher interest rates. Maybe someone will find sense and stop this Testosterone Laced bullsh*t trade war, but I doubt it.
Note also that Interest rates going up, contribute to Inflation (see the table below). Interesting spiralling effect. Stats Canada used to put out a more detailed report, but they have discontinued that report.
Biggest Inflation Contributors Over Past Year
|July 2017 to July 2018|
|Main contributors to the 12-month change|
|Main upward contributors|
|Food purchased from restaurants||4.4|
|Mortgage interest cost||5.2|
|Purchase of passenger vehicles||2.0|
|Main downward contributors|
|Digital computing equipment and devices||-3.5|
Consumer Price Index Increases by Category