Canada | Inflation across Canada, where it’s hot and where it’s not
Headline CPI inflation in Canada was up 3.1% y/y in June, and we expect that a transient release of pent-up demand, supply shortages, and other pandemic-related factors will keep it well above the Bank of Canada’s 2% target in the near term. But there are important regional differences, with y/y inflation in June ranging from a low of 1.8% in Saskatchewan to a high of 5.3% in PEI.
What you will learn:
- Inflation is currently stronger in the east than the west. This partially reflects base effects, as consumer prices fell more sharply in Atlantic provinces at the onset of the pandemic. But eastern provinces also saw faster rises in transportation costs than western provinces over the past year.
- Excluding the more volatile food and energy components of CPI, provincial core inflation rates are lower, and the gap between provinces shrinks considerably.
- Two-year average inflation rates are also more comparable across provinces than the current pandemic-affected y/y headline print, and all provinces have a two-year inflation rate well within the Bank of Canada’s 1-3% target range.
What AI means for economies, businesses, jobs & cities
Artificial Intelligence has the potential to fix the world's productivity problems, just as previous general purpose technologies such as steam power, electricity, and computers have, in our view.Find Out More
Australia: Flight to quality occurring but secondary markets may not be doomed
We believe the most significant policy measures to come through in the budget for residential building are the announced tax tweaks for build-to-rent (BTR) development.Find Out More