Inflation rose again in July to 3.3 per cent, above the Bank of Canada target of 3 per cent, fueling speculation that another interest rate hike might be imminent.
Gas prices have been cited as one factor behind rising inflation but Larry Short, Senior Investment Advisor with Short Financial, a branch of IA Private Wealth in St. John’s, says consumer demand is the main factor driving inflation.
“It’s the demand for everything,” says Short. “Until that demand slows down, prices will continue to go higher.”
In the meantime, while many believe the world is moving off oil, oil consumption is back to where it was prior to the pandemic says Short.
Oil consumption is back to where it was in 2019 despite the proliferation of electrification, wind farms and solar plants according to Short.
