economic commentary
June 30, 2024 - Inflation Levels Decline On Uneven Path
Progress continues to be made on the inflation front, however, declines have not occurred on a path that central bankers would like to see. Although current inflation levels are much lower than the peak levels reached in 2022, monthly improvements have not exhibited a consistent downward trend. Canadian inflation started the year at 3.4%, fell during the first two months of the year, and then moved higher in March to 2.9%. Further progress was made in April, with inflation declining to 2.7%, however, there was a surprise uptick to 2.9% again in May. U.S. inflation, which also started the year at 3.4%, has not had a consistent trend either and was 2.9% in May. Inflation in Europe, which peaked at much higher levels than in North America, has shown more dramatic improvement. May inflation in the Eurozone was 2.6% and in the U.K it was 2.0%. Inflation still remains higher than the central bank target of 2% and continues to be the major factor that will impact monetary policy going forward.
