ONTARIO: Food price inflation is set to slow, helped in part by “reasonably good harvests” in Canada and several other countries, Bank of Canada governor Tiff Macklem says.
“I am actually hopeful that at least food inflation, which is not quite the same thing as food prices, is going to come down because in Canada and in a number of other countries there have been reasonably good harvests,” Macklem said in an interview with federal government-owned CBC Radio broadcast.
He also pointed to the resumption of some wheat shipments out of Ukraine, a major exporter before the war with Russia.
Inflation has started to ease as the central bank lifted interest rates to 3.25%. Consumer prices climbed 7% in August, slowing from the 7.6% increase in July.
Interest rate increases “have started to cool parts of the economy, and actually that’s what we need,” said Macklem. — Bloomberg