Post by Said1 on Sept 23, 2005 7:15:28 GMT -5
It's already reflective in the cost of housing, rents going up. I would say the cost of buying a home will go down considerably this spring as a result also - in this city anyway!
[Bank of Canada sees energy price fueling inflation
By Ka Yan Ng
TORONTO, Sept 22 (Reuters) - Bank of Canada Governor David Dodge said on Thursday that the inflation rate can be expected to rise in coming months, thanks largely to high energy costs, which are also forecast to maintain upward pressure on the Canadian dollar.
Dodge noted that the high energy prices do not yet seem to be resulting in higher costs for other Canadian goods and services, but that could quickly change.
"At the moment we do not see very much in the way of feed through, but that is largely due to the very competitive global markets for products and services for which energy is a major input," Dodge said after a speech in Toronto.
He said he expects headline inflation, which includes volatile items such as energy prices, will go well above 3 percent in coming months, following Hurricane Katrina, which cut oil production on the U.S. Gulf Coast.
"We still view that as a spike, but the longer it goes on, obviously the greater risk that it's going to feed through into other prices," said Dodge, as Hurricane Rita moved closer to the key U.S. oil producing region.
Soaring gasoline prices pushed Canada's annual inflation rate up in August to 2.6 percent, while the Bank of Canada's closely watched measure of core inflation was 1.7 percent, just ahead of market expectations.
Market watchers said these numbers confirmed their belief that the central bank would continue raising interest rates, most likely at the next rate setting on Oct. 18.
EYE ON THE CANADIAN DOLLAR
Dodge also said that the central bank is keeping a close watch on the causes behind the rapid rise of the Canadian dollar, including high energy prices, but he refused to comment on the level of the currency.
"As you know, we don't comment on the dollar," he said after a speech in Toronto.
Dodge said the central bank is examining whether the currency's rapid rise has been driven primarily by demand for Canadian goods and services or by external factors such as U.S. dollar movements[/quote]
Continued: today.reuters.com/investing/financeArticle.aspx?type=economicNews&storyID=2005-09-22T230220Z_01_N22400628_RTRIDST_0_ECONOMY-CANADA-DODGE.XML
[Bank of Canada sees energy price fueling inflation
By Ka Yan Ng
TORONTO, Sept 22 (Reuters) - Bank of Canada Governor David Dodge said on Thursday that the inflation rate can be expected to rise in coming months, thanks largely to high energy costs, which are also forecast to maintain upward pressure on the Canadian dollar.
Dodge noted that the high energy prices do not yet seem to be resulting in higher costs for other Canadian goods and services, but that could quickly change.
"At the moment we do not see very much in the way of feed through, but that is largely due to the very competitive global markets for products and services for which energy is a major input," Dodge said after a speech in Toronto.
He said he expects headline inflation, which includes volatile items such as energy prices, will go well above 3 percent in coming months, following Hurricane Katrina, which cut oil production on the U.S. Gulf Coast.
"We still view that as a spike, but the longer it goes on, obviously the greater risk that it's going to feed through into other prices," said Dodge, as Hurricane Rita moved closer to the key U.S. oil producing region.
Soaring gasoline prices pushed Canada's annual inflation rate up in August to 2.6 percent, while the Bank of Canada's closely watched measure of core inflation was 1.7 percent, just ahead of market expectations.
Market watchers said these numbers confirmed their belief that the central bank would continue raising interest rates, most likely at the next rate setting on Oct. 18.
EYE ON THE CANADIAN DOLLAR
Dodge also said that the central bank is keeping a close watch on the causes behind the rapid rise of the Canadian dollar, including high energy prices, but he refused to comment on the level of the currency.
"As you know, we don't comment on the dollar," he said after a speech in Toronto.
Dodge said the central bank is examining whether the currency's rapid rise has been driven primarily by demand for Canadian goods and services or by external factors such as U.S. dollar movements[/quote]
Continued: today.reuters.com/investing/financeArticle.aspx?type=economicNews&storyID=2005-09-22T230220Z_01_N22400628_RTRIDST_0_ECONOMY-CANADA-DODGE.XML