And businesses are saying they are still increasing their prices more frequently than they did before the pandemic. Looking ahead, we continue to expect economic growth to moderate and inflation to ease, but this will take longer than we forecast in January and April.
As the global economy slows and higher interest rates work their way through the Canadian economy, we expect economic growth to average about 1% through the second half of this year and the first half of next year. This means the economy moves into modest excess supply in early 2024, and this should relieve price pressures.