Canada Inflation Eases To 2 3 Slower Than Economists Expecte
Bloomberg1 day
Canada's Inflation Cools to 2.3% in March
Above: A shopper checks a container of GoodHost iced tea, a Canadian brand, at a store in Edmonton on April 10, 2025. Image copyright: Artur Widak/Contributor/NurPhoto via Getty Images
The Spin
Narrative A
The cooling inflation gives the Bank of Canada the flexibility to continue its rate-cutting cycle, especially given the crumbling consumer and business sentiment and expectations of economic weakness in the current quarter.
Narrative B
The threat of escalating trade tensions with the U.S. could create a stagflationary environment with slower growth and rising prices, suggesting the central bank should maintain current rates to manage uncertainty.
Liberal Party narrative
Mark Carney is committed to opposing U.S. President Donald Trump's tariffs, putting money back in Canadians' pockets, creating new jobs, cutting taxes for the middle class, and building a stronger economy. Only a Liberal government can make life more affordable and reverse inflationary deficits.
Conservative narrative
Canada's inflation fight needs fiscal sanity: Pierre Poilievre would reform taxes, stop creating cash, reduce wasteful expenditures and government overspending, and start investing in homes, energy, and manufactured goods. That is the only path to bigger buying power and a lower cost of living.