Friday, May 30, 2025

Latest

Canada’s Inflation Rate Enters Negative Territory Amid Economic Downturn

According to recent Statistics Canada data, the inflation rate has hit negative territory for the first time since the 2009 recession.

As the coronavirus pandemic caused Canada’s economy to enter into lockdown mode, the demand for consumerism decreased, and fossil fuel prices plummeted. As a result, prices have dropped by 0.2% in April compared to the same time a year prior- which is definitely not on par with the otherwise annual rate of 0.9% in March.

However, core inflation readings provide a more precise estimate of price changes, since they exclude volatile variables such as fossil fuel prices. As such, core inflation has dropped by 0.3% April, which is the lowest it has been since January of last year. Given that consumers are most likely not going to be returning to pre-pandemic spending levels, inflation will remain at historically low levels for a longer period of time.

If the spell of decreasing inflation persists, it could lead to deflation, which would ultimately increase the value of the Canadian dollar. Nonetheless, the Bank of Canada will most likely not be conducting contractionary policy in the near future.

Information for this briefing was found via Bloomberg, Reuters and Statistics Canada. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

How To Profit From $3300 Gold? An Inside Look At A Massive 300,000 Oz Project | Martino De Ciccio

We’re At The Start of a Great Silver Boom | Ross McElroy & Andy Bowering – Apollo Silver Corp

Equinox Gold Q1 Earnings: When Everything Goes Wrong

Recommended

ESGold Begins Concentration Tests Ahead Of First Production

Sterling Metals Hits 0.21% Copper Over 482.8 Metres In First Drilling At Soo Copper project

Related News

US CPI Rises to 3.2% in July

Inflation in the US rose another 0.2% month-over-month in July, resulting in an annual increase...

Thursday, August 10, 2023, 08:39:28 AM

BoC Governor Tiff Macklem Reiterates Inflation is Still Transitory, But ‘Not Short-Lived’

Bank of Canada Governor Tiff Macklem recently sat down with the CTV’s Question Period to...

Tuesday, November 9, 2021, 04:20:00 PM

OECD: World Economy Forecast to Contract by 4.5% in 2020

While much of the world economy collapsed under the weight of the deadly coronavirus pandemic...

Wednesday, September 16, 2020, 01:33:28 PM

Jeff Booth: Governments Print Money to Offset Technology Deflation – The Daily Dive

Today on the Daily Dive, we sit down with Jeff Booth, author of The Price...

Thursday, April 15, 2021, 01:30:50 PM

Is The Rate Hike Pause The Calm Before The Recession Storm?

As was forecasted by economists, Bank of Canada Governor Tiff Macklem decided to keep the...

Thursday, September 7, 2023, 12:39:00 PM