In a recent interview with the Calgary Herald, Chief Economist Charles St-Arnaud shared insights on what he expects the Bank of Canada (BoC) to do to further attempt to control inflation – and what this means for increasing costs overall for the average Albertan, who may hold a higher level of debt than other Canadians.
He told the Herald that the increase in shelter and food prices has outstripped the drop in prices at the gas pump and caused inflation to rise in Alberta from six per cent to 6.2 per cent last month.
He expects food prices will continue to increase into early 2023.
80 per cent of the cost of living categories used to calculate inflation are above the three per cent year-over-year threshold the BoC sets as targets, while 63 per cent of categories have surpassed five per cent.” He said.
“There are some encouraging trends, including decelerating three-month inflation levels in most categories.”
But St-Arnaud stated he remains uncertain just how high the BoC will hike interest rates beyond October.