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Dear John,
Since 1991, the average annual rate of inflation in Canada has been 1.9%.
Our inflation rate just hit 4.4% – and shows no sign of slowing down.
The Bank of Canada claims inflation rates will return to normal levels after the pandemic subsides.
But a new Fraser Institute study out today finds that higher inflation rates may persist due to aging populations; higher business taxes and more government regulations; and energy mandates (e.g. Ottawa’s recently-announced emissions cap for Canada’s oil and gas sector).
If central banks want to ensure that today’s higher inflation is transitory, they need to stop injecting unprecedented amounts of money into the economy.
Learn more by checking out today's important study here.
Stay safe,
Niels Veldhuis
President
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