6 In examining the current situation, our most recent Financial System Review notes that income growth, low unemployment rates, and relatively good financing conditions have supported rising house prices, although the pace of increase has slowed somewhat. This deceleration has been most noticeable in markets (such as Alberta) that have posted very steep price increases over the past two years.
At the same time, demand for energy is increasing in advanced economies in anticipation of supplies for winter. These factors have resulted in a productiondemand gap and higher international commodity prices, such as oil, coal, and food prices (Graph 8).