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2026-02-18 01:54:10
[Slowing CPI in Canada Provides Flexibility for Economic Management] RBC economist Nathan Janzen stated that overall inflation in Canada slowed in January, despite tax-related distortions that should have pushed up CPI a year ago. He said the slower inflation provides the Bank of Canada with greater flexibility in guiding interest rate policy, as the country's economy faces turbulence from US trade policy and the rise of AI. Janzen said RBC does not expect further interest rate cuts, noting that price increases remain high in some sectors—particularly food and dining costs. He added that the two core CPI indicators favored by the Bank of Canada have remained above 2% for nearly five years.
