November 15 - Trevor Tombe, professor of economics at the University of Calgary, and a co-author of a new C.D. Howe Institute report on key drivers of inflation in Canada, tells BNN Bloomberg that the drop in inflation over the past year was driven by falling energy prices. He says persisting inflation is being led by supply side factors such as pricing strategies, production costs and supply chain problems, and that the Bank of Canada may have to continue its tight monetary stance to counter the upward push of these factors against the downward push on demand created by its interest rate hikes. He also says wages and labour costs have not been significant contributors to either inflation’s rise or fall.
Supply Side Factors are Driving Remaining Inflation in Canada
November 15, 2023