Canada’s Inflation Holds Steady at 3.1%, Dampening Hopes for Faster Decline

Despite economists’ hopes, Canada’s inflation rate remained stuck at 3.1% in November, dashing dreams of a dip below the Bank of Canada’s target of 2%. Housing costs, still soaring, are a major culprit, with mortgage interest and rent rising sharply year-over-year. Travel expenses added upward pressure too, although slower food and energy price increases helped balance things out.

Canadians, however, aren’t seeing the promised relief. Groceries, though rising slower than before, still sting, with Chloe Daley, interviewed by CBC, lamenting the persistent high prices.

While the Bank of Canada held rates steady for the fourth month, experts like Douglas Porter see a glimmer of hope. Underlying inflation is trending down, the economy is cooling, and a mid-2024 rate cut might still be on the cards.