Inflation Falls to 2.8% (June 2023)
Canada's inflation rate cooled for the 12th time in a row from a peal of 8.1% in June of 2022 to just 2.8% in June of 2023 - what a difference a year makes! This was mainly the result of significantly lower gas prices but core inflation is still high around 4% (the target rates is 2%), especially food prices.
The Bank of Canada just raised interest rates 6 days ago and in June and in May, so I don't see how they raise it again any time soon with inflation coming down and the effects of those interest rate increases not even being felt yet - I think that would just be unnecessary suffering. Don't expect interest rate cuts this year either unless the economic data nose dives - only time will tell.
When interest rates start going back down, and they eventually will - watch out for real estate prices because there is so much pent up demand out there - it will be interesting to see what happens.
Contact me if you want to get ahead of the rend and invest today - I have projects that work even at today’s interest rates!
