Swings in inflation not ‘unusual,’ but underlying price pressures still high: BoC
By The Canadian Press on September 19, 2023.
REGINA – Bank of Canada deputy governor Sharon Kozicki says swings in the inflation rate are to be expected in a speech coming after the latest consumer price index report showed inflation climbed in August for the second month in a row. Statistics Canada reported today that inflation ticked up to four per cent last month. Kozicki weighs in on the numbers during a speech she is delivering today at the University of Regina. According to her prepared remarks, Kozicki said the Bank of Canada pays attention to core measures of inflation in order to look through extreme swings in prices to the fundamentals. She said these measures show inflation is still well above the two per cent target, even when mortgage interest costs are excluded from the calculation. Economists reacting to today’s inflation report say the data spells bad news for the central bank, though many expect the Bank of Canada to continue holding rates steady as the economy slows. This report by The Canadian Press was first published Sept. 19, 2023. 8-7
