Statistics Canada just published the most recent inflation numbers, rising to 3.7% during July. Prior to COVID inflation hovered around 2.0%. An increase in price levels of nearly 100% within a short period of time on the surface is concerning. Lenders base their returns on future receivables so inflation is one very important consideration. With COVID having lasted so long the supply chain has been impacted with many manufacturing facilities either shut down or operating at reduced capacity. This has created shortages of many products. Whether inflation is a short term occurrence or structural in nature remains to be seen but certainly something to watch carefully. #recg #commercialvaluations #inflation #BOC
Demitry Omrin
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