After peaking at 8.1 percent in June 2022, headline inflation sits just below the Bank of Canada’s target at 1.9 percent. While goods inflation remains low, services inflation remains stubbornly high, contributing to the Bank’s recent decision to leave its policy rate unchanged at 2.75 percent. Services sectors tend to be more labour-intensive than goods sectors, and wage growth, while declining, is elevated relative to headline inflation.
For more on the Bank of Canada’s recent policy rate decision, see here.
