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Inflation in Canada has reached a 30-year high, increasing the chances of a quick rate hike

Canada's annual growth rate rose to a 30-year high in December, according to figures released on Wednesday, reinforcing predictions that the central bank could begin raising interest rates as soon as next week.

Statistics Canada reported that inflation jumped to 4.8 percent in December, in line with estimates and up from 4.7 percent in November. It was the ninth month in a row that headline inflation exceeded the Bank of Canada's target range of 1–3%.

All core inflation gauges increased, with the CPI common measure reaching a near-ten-year high of 2.1 percent.

Despite the uncertainties surrounding the impact of the Omicron coronavirus type, this might lend fire to speculations that the central bank will begin raising interest rates next week.

19 Jan 2022


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