Justin Trudeau can take solace from the fact that inflation probably won’t get much worse than June’s reading of 8.1%. The Canadian leader’s political problems, however, are just beginning.
Statistics Canada said Wednesday that annual consumer price gains hit their highest since January 1983, a week after the Bank of Canada surprised markets by hiking interest rates by a full percentage point to beat down inflationary pressures.
Those back-to-back signals make clear that the overheating economy no longer needs the large budget deficits that have characterized Trudeau’s reign as prime minister.
