High wage growth could be bad news when it comes to lowering the inflation rate.
Wages for Canadians are now growing faster than inflation but economists are concerned the wage growth might hamper further reduction of the inflation rate.
Statistics Canada is scheduled to release its consumer price index on Tuesday and its expected to indicate that the inflation rate continued to slow down in April.
The Bank of Canada, which would like to see the inflation rate reduced to two per cent, is worried about how the tight labour market is affecting wages. After trailing inflation for an extended period, wage growth has now exceeded inflation, climbing to 5.2 per cent in April.
Nojoud Al Mallees of The Canadian Press spoke with a number of economists about the issues. The resulting story is available HERE.
















