Is the Bank of Canada winning its war on inflation?

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That’s a worrying development, according to Laird, especially because there’s little that Canadians can do in terms of dramatically changing their habits on food purchases.

“Fuel and some of the other things that go into inflation, you can change behaviour on, [but] every family out there has to buy food,” he said. “So I think that’s still pretty concerning, and probably the most important part of the goods that [StatCan] have looked at.”

The news on inflation arrived about two weeks after the Bank of Canada announced its latest policy rate hike, a 75-basis-point jump that means that rate has now increased by 3% since March.

Beaudry said the Bank would “continue to take whatever actions are necessary” to stabilize prices and continue pushing inflation back towards the 2% target.

That seems to indicate that further hikes are almost certain, with the central bank having also said in its September statement that it anticipated more rate increases would be required to further puncture the inflation bubble.

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