High input costs putting floor under near-term inflation

  • 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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