It is pretty evident we are approaching the end of an inflationary cycle.
First, and most obvious, is we’re seeing interest rates fall. And they will continue to fall.
Here in Canada, we’ve seen three reductions – totaling a decline of 1.5-percent – so far. The Americans are about to embark on their reduction process while here at home, at least one forecaster is calling for declines in the range of two-percent more before levelling out in the next year or so.
And the second indicator is the fighting between labor and management.
The last time we had a major inflationary cycle, strikes by the major unions such as public sector and transportation workers, were quite common as the war to bring down price increases shifted in our favor and workers wanted wages to catch up.
We’re seeing that again these days. First it was WestJet and then the railways and most recently Air Canada.
Complicating this a bit further is scrapping between Ottawa and public workers over a return to office policy and teachers here in Saskatchewan over funding classroom complexity issues.
