Slow Wage Growth Should Keep Canada's CPI in Check
Dow Jones
Yesterday
1012 ET - The slowdown in annual average hourly wage growth in Canada, to 2% in August, marks a "sudden drop" following years of 3%-plus increases, says Tu Nguyen, economist at RSM Canada. This is "a sign of business caution, and a more balanced job market," she says. Recent data suggest headline inflation sits at 3%, fueled by gas prices. Nguyen says the wage slowdown should keep inflation anchored, as lower pay keeps business costs stable and reduces the need among firms to pass on higher costs to consumers.
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