Low-Income Household Spending a Key Factor When Canada’s Inflation Underwhelms
Produce is shown in a grocery store in Toronto in this file photo. Anemic spending by lower-income households on food was one reason for lower-than-expected inflation in the post-2012 economic recovery. The Canadian Press/Nathan Denette
Since the financial crisis, major central banks have been struggling to raise inflation, but a study by the C.D. Howe Institute explains that for Canada, uneven economic growth across industries and the spending patterns of the lower-income brackets have caused systematic divergences from analysts’ inflation projections.
Rahul Vaidyanath
Journalist
Rahul Vaidyanath is a journalist with The Epoch Times in Ottawa. His areas of expertise include the economy, financial markets, China, and national defence and security. He has worked for the Bank of Canada, Canada Mortgage and Housing Corp., and investment banks in Toronto, New York, and Los Angeles.
