In this episode, I look at Canada’s latest inflation numbers for January 2025, where headline inflation ticked up to 1.9%. Even though we've had six months below the Bank of Canada’s 2% target, rising core inflation measures could limit future interest rate cuts, creating uncertainty for investors and the broader economy.
Also in this episode:
- Transportation costs surged due to rising gas prices, impacting sectors sensitive to fuel costs like logistics and travel.
- Shelter costs remained steady at 4.5%, hinting at possible stability in Canada’s housing market.
- Core inflation climbed to 2.1%, raising concerns that the Bank of Canada’s rate-cutting cycle might be short-lived.
- Investors face a delicate balance as lower rates boost markets, but persistent inflation could reverse those gains.
- Trade tensions with the U.S. loom as a wildcard for Canadian inflation and market stability in the coming months.
This content was originally posted on the Beavis Wealth YouTube Channel