You monthly market update

Submitted by Brett on August 9, 2023 - 12:00am

Mortgage costs continue to drive inflation

Thanks to a drop in gasoline prices, Canada's inflation rate moderated to 2.8% in June. Inflation is now within the Bank of Canada's 1 to 3% target range, but surging mortgage costs are part of a dynamic that's helping it stick around.

On the other hand, early estimates suggest consumer demand may have fallen in June, and tighter financial conditions continue to take a toll on Canadian households and businesses.

In this month's market update, we take a closer look at the Canadian economy, why the U.S.'s short-term interest rate is the highest its been since 2001 and how high debt is contributing to weakness in the Chinese economy

Read the full market commentary on canadalifeinvest.ca, including the following topics:

Higher mortgage costs keeping Canada's inflation elevated
Softening Canadian consumer demand weighing on sales data
The Fed's fight against inflation continues
China's economy shows underlying weakness

For the latest news and insights, check out canadalifeinvest.ca

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