If governments do not coordinate their actions with their central banks, however, they risk offsetting the intended effects of changes in monetary policy.īusinesses similarly have a role to play in slowing inflation. They can raise taxes and reduce spending during good times and do the opposite during bad times. By doing so, they can prevent pushback on any further interest rate increases and the assumption that inflation will be permanently higher.”Īccording to The Conference Board of Canada, governments have a multitude of tools available to help quell inflation.

“While the Bank of Canada acted aggressively to contain inflation by increasing interest rates, their role now shifts to ensuring Canadians understand why the moves were necessary. “Many of the factors driving inflation were global and stemmed from the pandemic,” according to Michael Burt, Vice President at The Conference Board of Canada.

Month-to-month inflation in Canada has slowed to roughly 3 per cent on an annualized basis, and The Conference Board of Canada expects inflation to continue slowing in 2023. Ottawa, Ap(GLOBE NEWSWIRE) - Inflation has been the major story in Canada and globally for the past year, and according to new research from The Conference Board of Canada, government, businesses and consumers can all play a role in slowing its impact.

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