Gurupdesh PandherGurupdesh Pandher, professor of finance in the Odette School of Business, discussed inflation’s impact on the Canadian economy and markets with journalist Katerina Georgieva on Sept. 21.

Professor discusses impact of inflation

Although the Consumer Price Index is moving in the right direction, inflation and higher interest rates to combat it will continue to have an impact on equity markets and employment, says finance professor Gurupdesh Pandher.

He discussed August data on inflation in an interview with CBC News on Sept. 21, the day of the data’s release.

“There is a mixed picture, with food prices increasing year-over-year while gasoline prices fell,” Dr. Pandher says. “This indicates some stabilizing; however, food and energy prices tend to be volatile and can change rapidly due to multiple factors, including extreme weather, geo-political events such as Russia-Ukraine, and local and international supply chain disruptions.”

Since the Bank of Canada has set a target of 2 per cent annual inflation, it will likely keep interest rates high through 2023, Pandher predicts. His interview also discussed how Canadians can plan ahead and the impact on cross-border shopping.

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