The Bank of Canada’s consultation on its monetary policy framework review found broad support for its 2% inflation target. However, participants complained about the disconnect between official inflation data and actual price of goods.
Inflation Concerns
Canada’s annual inflation rate in May accelerated to 3.2%, the first time in nearly two and a half years that headline inflation moved outside the BoC’s 1%-3% target range. The current spike in inflation was largely concentrated in gasoline costs due to the Iran conflict.
Young Canadians who participated in the consultations said they have largely abandoned hope of ever owning a home. They dismissed the central bank’s explanation that housing affordability falls beyond its mandate.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
