Monetary Policy ReportJuly 2024 – Bank of Canada [Video]

Overview

Consumer price index (CPI) inflation in Canada is moving closer to the 2% target.

Inflation is no longer broad-based, and measures of core inflation have eased significantly. However, some pressures remain, particularly in prices for services.

Progress back to target is expected to be uneven.

See details in the Projections section.

Canadian economy

Economic growth in Canada has picked up but is weak relative to population growth. Consumer spending per person has been declining, and residential investment has been subdued. Strong population growth has added to the supply of workers, and the labour market has cooled significantly.

The ongoing excess supply in the economy is expected to pull inflation down. Other indicators also point to lower inflation going forward. Inflation expectations have generally fallen, and businesses have gone back to their …