Cpi prediction for todayCanada's inflation rate will fall to ~ 3.6% y/y. This month or next month will likely be the bottom inflation print for the rest of the year or until a recession brings it down. People are going to be celebrating this number but keep in mind that energy prices peaked around last year this time. It's too early to be celebrating the inflation war.
A few things worth noting about Canada's economy.
-labour productivity is -1.75% y/y from Q1 this year to last year
- average hours worked is down -0.8% y/y which took a nose dive in Q1.
Before businesses layoffs their workers, they usually reduce their working hours. First, productivity turns negative, then the average work week is reduced, then finally layoffs emerge.
- quarter over quarter analyzed, the average hrs worked is down 2.43% which raises a red flag on the economy.