Inflation Expectations Rise Amidst Growing Uncertainty
Uncertainty surrounding Trump’s trade war has stoked inflation expectations. In March 2025, expectations were for one-year inflation to increase to 3.5 per cent. Are consumers and businesses integrating the U.S.’s tariff threats into their long-term inflation expectations? What are the impacts of the trade war on consumer and business confidence and, concomitantly, on spending, investment and jobs? How will the Bank of Canada respond?
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