The most recent monthly inflation figures for Canada and Alberta have just been released. In January 2023, Canadian headline inflation was 5.9%, representing a slight improvement from December’s 6.3% rate. Meanwhile, Alberta’s inflation rate dropped to 5% in January, largely due to lower energy costs. However, food prices in the province increased by 10.5%. Despite these challenges, the Bank of Canada is expected to maintain its current policy interest rate of 4.5% as long as inflation continues to ease. With the decline in energy costs and stable interest rates, the Canadian economy is expected to recover, although supply chain disruptions and rising food prices remain a concern.
Overall this is good news as it appears that the interest rate increases have been effective in achieving their goal of reducing inflation.
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