Despite good economic news, experts warn the pains not over yet – National [Video]

Inflation is back at the coveted two per cent annual rate.

Wage hikes have outpaced inflation for 19 months in a row.

The Bank of Canada is three rate cuts into an easing cycle, with no signs of stopping anytime soon.

The recent run of positive economic news had the Liberal government — long challenged by an affordability crisis in Canada — celebrating in the House of Commons this week.

Finance Minister Chrystia Freeland on Tuesday hailed the August inflation report as “good news for Canadians” and the “light at the end of the tunnel” after years of surging prices and pandemic-related disruptions in the economy.

RBC assistant chief economist Nathan Janzen tells Global News that there’s indeed reason to celebrate as price stability shows signs of returning and the Bank of Canada unwinds from the most rapid tightening cycle in its history.

But he also warns that focusing on inflation …