Breaking News
Investing Pro 0
Last Call for Cyber Monday! Save Now on Claim 60% OFF

Canada's inflation rate hits four per cent, high interest rates expected to persist

Published Sep 19, 2023 09:45PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
CAD/USD
+0.46%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

Canada's headline inflation rate has risen for the second consecutive month, reaching four per cent in August, primarily driven by increased food and gasoline prices. This unexpected surge has surpassed economists' forecasts and is predicted to sustain high interest rates until at least spring of next year, according to a recent report from Statistics Canada on Tuesday.

Sal Guatieri, Director and Senior Economist of BMO Capital Markets, expressed concerns over the persistent inflation rate. He highlighted that the consumer price index (CPI) median has once again exceeded four per cent. The Bank of Canada has previously shown concern about the slow pace of decline in core measures of inflation, and this recent increase is likely to intensify these worries.

Rising prices across the services sector are also adding pressure on Canadian consumers, Guatieri pointed out. This includes the escalating cost of renting. Despite these inflationary pressures, Guatieri does not foresee the Bank of Canada increasing its benchmark interest rate in the coming month. He argues that such a move could further slow down an economy that he describes as already significantly decelerated.

While Guatieri suggests that interest rates may not need to rise further, he anticipates they will remain elevated for an extended period. He does not predict any potential cuts in interest rates by the Bank of Canada until next spring at the earliest. This forecast presents a scenario where Canadians might have to grapple with high interest rates for a longer period than initially anticipated.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Canada's inflation rate hits four per cent, high interest rates expected to persist
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email