At long last inflation has fallen. The consumer price index rose by 2.9 per cent in January, down from 3.4 per cent in December. That’s great news for, well, just about everyone.
As Bank of Canada Governor Tiff Macklem said last November, inflation is “our common enemy — not only because it creates financial pain and social upheaval, but also because no one wins when inflation is high and volatile.”
However, this modest fall in inflation will not remedy the damage and precariousness introduced by the pandemic and the inflationary run up it brought about. Sharp rises in inflation create societal rifts that a subsequent fall in inflation cannot so easily solve.
