The inflation numbers for August 2022 for both Canada & the United States came out over the past week. In Canada our inflation rate dropped from 7.6% to 7%, and in the US it decreased from 8.5 to 8.3. While both are retreating from the highs of a few months ago, we are still well off the comfort level of 2%.
As a result of the still too high inflation rate, the US Federal Reserve delivered it’s third straight 75 basis point increase to their interest rates yesterday. To many economists this bakes in with pretty much certainty that the Bank of Canada will follow suit with another large rate increase when it meets next on October 26th. The only thing that could change the amount of the rate change would be the CPI (inflation) numbers that will be coming out on the 19th of October.
So while we are improving and prices of goods and gasoline are coming down, according to the central bankers it is just not retreating fast enough. A lot could happen in the next month to determine the size of the next rate change from the central bankers.
Today I am thankful for a warm muggy fall day which was perfect for a run this morning, the idea’s that come from reading great books and opportunities that come from working long hours.
“Inflation is when you pay fifteen dollars for the ten-dollar haircut you used to get for five dollars when you had hair.” Sam Ewing
I look forward to hearing from you in regard to your mortgage needs.
p.s.s- I should tell you that I am licensed in Nova Scotia Brokerage (2021-3000179) Broker (2021-3000180), Ontario(M18001555) & in British Columbia(BCFSA #504098).
p.s.s.s You can download my new mortgage app here