Housing, cars and input prices still driving inflation higher in Canada

  • Surging house prices underpinning higher shelter costs.
  • Share of goods/services seeing higher price growth continuing to broaden.
  • Wage growth to pick-up; recent gains more present for highly-skilled jobs.


December 15, 2021

  • Inflation pressure in Canada has been broadening, with more goods and services seeing above-target levels of price growth.
  • Energy commodity prices jolted on Omicron related concerns.
  • Wage pressures are building, although unevenly across industries.


November 17, 2021

  • Even excluding higher shelter costs, prices in Canada have bounced back above pre-pandemic trends.
  • Inflation pressure is broadening with more of the consumer basket seeing above-target rate of growth.
  • Inflation expectations, from market, businesses and consumers are still edging up.


October 20, 2021

  • Share of CPI basket seeing above-trend price increases from pre-pandemic levels still rising
  • Energy prices have increased; industrial input prices remain elevated
  • More businesses reported capacity issues related to shortages of inputs and supply chain disruptions in Q3


September 15, 2021

  • Shelter prices have surged but the pace of growth is now slowing
  • Motor vehicle production disruptions expected to keep vehicle prices high
  • Supply chain disruptions and increased services demand taking over as driver of price growth


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August 18, 2021

  • Headline CPI growth still impacted by ‘transitory’ factors but growth in industrial prices beginning to slow
  • Slower demand for homes will limit further gains in accommodation related expenses
  • Rising agriculture commodity prices and firming consumer demand to keep floor under price growth


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July 28, 2021

  • Cars and homes accounted for much of price growth in June
  • Investors are still betting that the inflation spike will prove temporary
  • Cooling commodity prices to temper soaring input costs


June 16, 2021

  • Consumer price increases were more broadly-based in May
  • Market inflation expectations plateau albeit at elevated levels
  • Rising input costs pose a key hurdle for businesses though some offset from stronger loonie


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May 20, 2021

  • Inflation pressure still manageable but broadening
  • Market expectations have dialed higher
  • Rising Input costs and firming demand to act as tailwinds for price growth


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Claire Fan is an economist at RBC. She focuses on macroeconomic trends and is responsible for projecting key indicators on GDP, labour markets as well as inflation for both Canada and the US.

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