Economists expect fresh data this week will reveal inflation slowed further in December, paving the way for the Bank of Canada to continue cutting interest rates.
A Reuters poll shows economists expect the annual inflation rate to come in at an average of 1.7 per cent for December, down from November’s 1.9 per cent rise.
But RBC sees it falling further than that — to 1.5 per cent — thanks to the federal government’s temporary GST tax holiday, as consumers spent less on a variety of items including food, restaurant meals, alcohol and children’s toys.
“We still have this view that the broader macroeconomic backdrop and current consumer demand
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