‘Excessive’ Immigration Is Putting Pressure on Inflation: Scotiabank Economist

In evaluating the latest inflation data, economist Derek Holt noted “Canada’s torrid rate of population growth is adding to inflationary pressures.”

A Canadian flag hangs from a lamppost in front of the Parliament Buildings in Ottawa on June 30, 2020. The Canadian Press/Adrian Wyld

Canada’s rapid population growth due to immigration is putting upward pressure on inflation, and further interest rate hikes are a distinct possibility despite predictions saying otherwise, according to a Scotiabank economist.

Derek Holt, vice-president and head of capital markets economics at Scotiabank, said in a Dec. 19 note evaluating the latest inflation data that “Canada’s torrid rate of population growth is adding to inflationary pressures.”