TSX:AX.PR.E - Post by User
Post by
Torontojayon Aug 03, 2024 5:54pm
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Post# 36163522
Inflation fight is over
Inflation fight is over With more people losing their jobs in Canada and the US, inflation is coming down. The people that will lose their jobs today will contribute to lower inflation with a lag of about 6-12 months. Inflation and unemployment rate are inversely correlated. I believe inflation has been slayed in both Canada and the US and we could look forward to some price stability and a better balance in the labour market.
I.e., A general rule of thumb, although not perfect, is that a 1% increase in unemployment is worth a decrease of 1% in inflation.