Bank of Canada Governor Warns of New Inflation Spike
And gives a prediction of when Canadians can expect prices to drop.
The Bank of Canada expects inflation to exceed 8% as early as this week when the June data is released.
Bank of Canada Governor Tiff Macklem, speaking at a press conference in Ontario immediately after Wednesday's scandalous 100-point interest rate hike, said: "Inflation is well above 7%. It's likely to exceed 8. We know that oil prices were very high in June, so I wouldn't be surprised if it goes up."
McLemm emphasized that the Bank of Canada expects the high rates to continue for a few more months. However, he urges business owners not to panic: he predicts inflation will fall to about 3% by the end of 2023 and reach the target level of 2% in 2024.
Recall that the May reading of 7.7% broke the record of January 1983. Analysts expect inflation to reach 8.3 percent in June, the highest level since 1982. The data will be released on July 20.
