There is talk in some places that we may be at the peak or just past the high point of inflation as higher interest rates – here and south of the border – start to dampen economic activity.
Economists call this peak inflation meaning the cost of living will still go up in the coming months but slower as future increases will be smaller.
Now, this is the talk in some places – not everywhere – and US interest rates are again rising so global markets will change again.
But here’s the good news. Fuel prices are starting to drop. That should continue. The cost of food is not increasing as rapidly, perhaps because we are in harvest season for fresh fruit and vegetables in Canada so we don’t have the shipping cost from the southern US. This might be a temporary blip.
And then there’s housing. As the cost of property goes down, the cost of financing real estate is rising so it may be a wash although we are seeing deflationary pressure on things like realtor fees because house prices are softening.
