Will Surging Inflation Make the BoC Hike Early?

Will Surging Inflation Make the BoC Hike Early?

By: Dylan Sikes – AllPennyStocks.com News

Friday, January 21, 2022

Canada’s inflation rate soared in December to a 30-year high amid surging grocery and housing prices. The headline inflation rate rose to 4.8 percent, up from 4.7 percent in November, ahead of analyst expectations.

The price growth marks the ninth month of inflation exceeding the Bank of Canada’s target zone of one to three percent. The highest gains were for food, housing and automobiles. Grocery prices climbed year-over-year by 5.7 percent, and housing, which climbed by 9.3 percent compared with December 2020.

While gains at the gas pumps were up 33.3 percent year over year, the effects of Omicron weighed on prices and gasoline prices were down from the 43.6 percent in November.

The data will come into focus at the Bank of Canada meeting next week. Analysts and economists are of the increasing consensus that the central bank will hike rates 25 basis points, another 25 point hike in March, followed by several more hikes, to bring the rate 2.25 percent by the end of 2023.

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