Canada's Inflation Conundrum

This chapter analyzes recent trends in Canada's inflation rates, highlighting a drop to 1.7% largely driven by falling gasoline prices and the implications of removing the consumer carbon levy. It critically examines the rising costs of essential goods, particularly food, and the impact on lower-income households, while addressing the complex relationship between inflation metrics and central bank policies. The discussion emphasizes the challenges posed by rising deficits and interest rates, alongside the ongoing debates surrounding economic inequality and the housing market.