Although inflation exceeded the Bank of Canada’s desired 3 percent ceiling in April, May, and June, both the bank and experts say that runaway inflation is not on the horizon. The central bank likes to keep inflation between 1 and 3 percent, but rates of 3.1 percent in June, 3.6 percent in May, and 3.4 percent in April exceeded those targets. On July 29, the Financial Post published an op-ed by Bank of Canada Governor Tiff Macklem in which he acknowledged the “prices of many goods and services are rising quickly.” Macklem stressed that many prices have been playing catch-up after plunging amid the pandemic, meaning higher-than-normal inflation at this time would bring Canada back on course. He also said a global shortage of computer chips caused by the pandemic has made new cars and many electronics more expensive. But these and other factors that led to increased prices are unlikely …
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