Ottawa/CMEDIA: Following a steep hike in prices, Canada’s inflation rate is reportedly expected to fall significantly this year.
Higher inflation which began in 2021, took off dramatically last year and peaked at 8.1 percent in the summer, well above the two per cent inflation target the Bank of Canada is supposed to maintain.
The reopening of economies after COVID-19 restrictions was marred by the Russian invasion of Ukraine and the disruptions in supply chains with little hope of restoration of normalcy in price growth.
Earlier this week, Statistics Canada reported last month’s decline of inflation rate to 5.9 percent from 6.3 percent in December.
According tothe the forecastings of both Bank of Canada and most private sector economists inflation will fall to about three percent by mid-year and back down to two per ent in 2024.
Canadians struggling with the cost of living, slower price growth do no see relief from high prices unless and until their incomes pick.
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