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Inflation Unexpectedly Heats Up in April—Will the Central Bank Raise Rates_

According to Statistics Canadau2019s latest Consumer Price Index report, fuel, groceries, and real estate were the biggest reasons for the increase. Food prices, which include groceries and food from restaurants, increased 8.3% in April, down from the 8.9% year-over-year increase in March. Restaurant prices meanwhile were up 6.4%, which is down from the 7.2% increase in March.

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Inflation Unexpectedly Heats Up in April—Will the Central Bank Raise Rates_

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  1. 416-510 5560 info@learn-to-trade.com Inflation Unexpectedly Heats Up in April - Will the Central Bank Raise Rates?

  2. Inflation Unexpectedly Heats Up in April Statistics Canada surprised the markets when it announced that the country’s inflation rate rose unexpectedly in April to 4.4%. After cooling in March to 4.3%, economists were expecting the inflation rate to continue decelerating to 4.1%. This represents the first increasing in inflation since June 2022, when Canada’s inflation rate hit a more than 40-year high of 8.1%.

  3. What Impacted Canada’s Inflation Rate? • According to Statistics Canada’s latest Consumer Price Index report, fuel, groceries, and real estate were the biggest reasons for the increase. Food prices, which include groceries and food from restaurants, increased 8.3% in April, down from the 8.9% year-over-year increase in March. Restaurant prices meanwhile were up 6.4%, which is down from the 7.2% increase in March. • The first increase in annual inflation since June 2022 was also fueled in part by higher mortgage costs and rent. Mortgage costs jumped a whopping 28.5% year-over-year. That’s up from 23.9% in February and 26.4% in March. Inflation for rent resulted in a 6.1% increase. Link:- https://learn-to-trade.com/inflation-unexpectedly-heats-up-in-april-will-the-central-bank-raise-rates/

  4. Will the Bank Of Canada Raise Interest Rates? • The surprising increase in inflation has many wondering if the Bank of Canada will be forced to resume raising its interest rates. While the annual inflation rate has been cut nearly in half since last June, getting inflation down to the Bank of Canada’s target of two percent has been more difficult than initially expected. • The central bank expects inflation to cool to around three percent this summer and will return to two percent in late 2024. • But will the central bank raise its rates when it meets next in late June? The one-month increase in inflation could be seen as a blimp, especially after months of cooling. That said, the central bank needs to do something to tame the hot labour market, which has resulted in near record-low unemployment. • That said, the odds of a rate hike in June have increased significantly to almost 1-in-3. At the start of May, the odds were around 1-in-50.

  5. 885 Don Mills Road, Suite 200 Toronto, Ontario M3C 1V9 Canada 416-510 5560 info@learn-to-trade.com

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