“Statistics Canada is set to release its latest reading on inflation tomorrow. The federal government’s fall economic statement is expected to come out in the afternoon, following the publication of the consumer price index for October.
In September, the annual inflation rate was reported at 3.8 per cent. Economists anticipate that the new report will show a downward trend in inflation, primarily due to the decrease in gasoline prices and the slowdown in the rise of food prices.
Positive news on declining inflation would be welcomed by the Bank of Canada, which is seeking proof of a sustained deceleration in consumer price growth. At its most recent rate decision, the central bank chose to keep its key interest rate unchanged at five per cent but has expressed readiness to raise rates if necessary to curb inflation. The Bank of Canada’s upcoming interest rate decision is scheduled for December 6.
The tantalizing question is whether this would alleviate concerns over inflation or trigger further rate increases. The future of Canada’s economic stability hangs in the balance, depending on the outcome of these events.
It’s truly a critical turning point for Canada, and the economic repercussions could be felt on a global scale.”
Source: The Canadian Press