In this report, we look at Canadian households’ expectations for inflation over the next year and next three years. The number of Canadians expecting inflation to remain above 3.0 per cent over the next 12 months has decreased, while more Canadians expect it to be within a range of 1.0 to 3.0 per cent. A similar pattern has emerged for expectations over the next three years, with the number of Canadians expecting inflation of above 3.0 per cent in the period decreasing and those expecting it to be within a range of 1.0 to 3.0 per cent increasing.
Do these expectations differ when viewed through the lenses of region, employment status, income level, age group, and housing status? If so, in what way and by how much do they differ, and what dynamics drive these variations?
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