News Analysis
Inflation appears to be a bigger worry for consumers than it is for the Bank of Canada. It could even be a ticking time bomb given Canadians’ elevated savings and fewer opportunities to spend due to pandemic measures.
Based on conventional economic data and analysis, official inflation is hardly at problematic levels, but inflation expectations, which are harder to quantify, may be the canary in the coal mine.
Google searches for “inflation” in Canada are at the highest they’ve ever been since the tech giant started keeping track in 2004. A similar phenomenon is taking place in the United States, even as the U.S. Federal Reserve projects inflation hovering around its 2 percent target—aside from temporary spikes—for the foreseeable future.
