Canada is headed towards a recession in 2023, but it will be short-lived and not as severe as prior downturns, according to a new report from RBC.
Central bank says businesses' expectations for near-term inflation have increased, and firms expect inflation to be high for longer than they did in the previous survey.
The agency said its consumer price index in May rose 7.7 per cent compared with a year ago, its largest increase since January 1983 when it gained 8.2 per cent and up from a 6.8 per cent increase in…
"Canadian inflation is running more than three times faster than target,'' Desjardins' head of macro strategy, Royce Mendes, wrote in a note to clients Monday.
Bank's latest Business Outlook Survey found that more than two-thirds of businesses anticipate inflation will be above three per cent, on average, over the next two years.
Canada's economy hit a pothole in February, as an unexpected trade deficit broke up a series of recent positive surprises.