economic commentary

September 30, 2022 - Persistent Inflation Dominates Markets

Persistent inflation remains the key driver impacting global financial markets. North American inflation levels showed signs of receding during the summer months, however, levels remain elevated and a concern for policymakers. U.S. inflation was 8.3% in August, down from the peak of 9.1% in June. Markets were expecting a lower level and, despite the improving trend, the absolute level was not well-received by the market. In Canada, inflation was 7.0% in August, down from the peak of 8.1%. Expectations were for a higher print, so expecta-tions going forward have improved for Canada. Inflation in the Eurozone continues to escalate, with the September print coming in at a record 10.0%, the highest level since the euro was established over twenty years ago. Central banks have a 2.0% target for inflation, so there is still a long way to go before price stability is achieved.


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