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 did the bank of Canada's inflation rate drop in May?

Inflation rate dropped to 3.4% in May. What that means for the Bank of Canada WATCH: Statistics Canada reported on Tuesday that the annual rate of inflation slowed down to 3.4 per cent in May, the lowest it has been since June 2021. The Bank of Canada’s next interest rate decision will be on July 12 – Jun 27, 2023

What will inflation look like in 2024?

Looking ahead, the Bank of Canada is forecasting inflation will fall to about three per cent by mid-year and back down to two per cent in 2024. Most private sector economists are forecasting similar figures as well.

Will 2023 be a good year for Canada?

For many Canadians, 2022 was a tough year as interest rates climbed, inflation soared and the economy slowed. Unfortunately, 2023 doesn't look like it will provide much respite. Analysts say a recession is looming and unemployment is expected to rise, all while prices remain high and interest rates bite into our purchasing power.