Inflation Rate 2025 Canada Outlook. After a period of high inflation, headline and core consumer price inflation are expected to stabilize around the 2% target over the medium term. Our current forecast is for the bank of canada to lower the overnight rate to 2% by the middle of 2025, and the risks are probably skewed to even more cuts, rather than less.
Economic growth in canada is forecast to improve in the second half of 2024 and strengthen further in 2025 and 2026. Inflation averages around 2½% in the first half of 2025 on the strength of services price inflation.
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