economic commentary

March 31, 2023 - Inflation Levels Moderate But Remain Elevated

Headline inflation has moderated over the past several months following the peak levels that were reached last summer. Global central banks have been aggressively raising interest rates in order to combat the extremely high levels of inflation that have existed for almost two years. Core inflation, however, has not declined to the same extent and remains at elevated levels. Headline inflation in Canada now sits at 5.2%, with core inflation at 4.9%. Inflation in the U.S. and Europe remains at higher levels, with headline readings of 6.0% and 6.9%, respectively. Despite the encouraging downward trend, these levels are still a concern for central bankers as inflation remains considerably higher than their 2% target. As a result, most central banks will need to continue to raise administered rates over the near-term.


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