Farmers Forum staff
OTTAWA — The continued rise in consumer prices, including food, remains “too high for comfort,” says the Conference Board of Canada, which suggests the Bank of Canada may hike interest rates again in January.
While there was a modest dip in the year-over-year core inflation rate in December 2022, last year overall saw prices go up 6.8% from 2021, the highest annual rate since 1982.
“Stubbornly high” growth in the consumer price index may compel the central bank to raise interest rates a quarter-point on Jan. 25 and inflation likely won’t subside to the bank’s satisfaction until December 2023, according to the independent research organization. “Until then, unfortunately, higher prices will inflict further pain on household finances,” it concludes.