Quote:
Originally Posted by uke_master
while still true (I think?) cpi did just tick up slightly over expectations right after posting this.
Imho the hard part about « sticky » inflation is just starting with recession risk (to me inevitable) .
It’s because we entering in a period where prices stop going higher by big margin now from last year .
So as soon gaz prices goes up or any other thing cpi will go up compared to last year .
Probably the BoC (like many others) will hike interest rates even more and it will kill the economy to reach that « ideology » of 2% cpi .
I think the kind of economy we have today could be manage at 3-4 % inflation but for many politicians
(and their political donators that don’t want to see their profit margin to go lower with higher wages ..) , higher then 2% inflation is unacceptable .
Despite the fact that 3-4 % inflation , ex 2005 +, was in the norm
https://www.worlddata.info/america/c...20was%202.8%25.
« During the observation period from 1960 to 2022, the average inflation rate was 3.8% per year. ».