How will inflation affect the Canadian economy in 2023?

As the effects of higher interest rates continue to spread through the economy, and with declines in energy prices and improved supply chains, inflation is projected to fall to around 3% in the middle of 2023 and reach the 2% target in 2024. What you need to know about the Bank of Canada’s assessment of the Canadian economy.

What happened in Canada in June 2023?

The annual inflation rate in Canada fell to 2.8% in June of 2023, the lowest since March of 2021 from 3.4% in the previous month and below market expectations of 3%, as gasoline prices declined further. Transportation costs fell by 3.4%, extending the 2.4% decline in the previous month amid a 21.6% slide in the price of gasoline.

Will Canada have a recession in 2023?

Economists from the Royal Bank of Canada (RBC) predict a moderate recession for Canada in early 2023 as key prices such as food and energy remain high. Consumer prices have increased with the CPI reaching 153.80 points as of October 2022.

Will inflation return in 2022?

The return of inflation was one of the biggest stories of 2022. Canadian consumers were coping with price increases the likes of which they hadn’t seen since bell bottoms were all the rage. So it’s only natural for people to be nervous about what’s in store on the inflation front in 2023.