The current higher inflation rates experienced by Canadians may not be transitory if the government and central bank do not modify their policies to address it, says a report released on Dec. 2. “While COVID’s effect on the economy has certainly contributed to the rising cost of goods and services, if central banks and governments continue their aggressive policies, higher inflation could persist even after the pandemic subsides,” stated Steven Globerman, professor emeritus at Western Washington University, resident scholar at the Fraser Institute, and co-author of “The Outlook for Inflation and Its Links to Monetary Policy.” The report examined the current factors leading to inflation and upcoming factors that could create inflationary pressures in the longer term. To put things into perspective, the report looked at inflation data from the past 50 years and showed that in 1971, which began a decade of high inflation (8.06 percent), inflation in Canada …
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