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Spending by federal and provincial governments in Canada will start feeding into inflation next year if current spending plans are maintained, Governor Tiff Macklem said on Wednesday.

If the governments follow through with their spending plans for 2024, it would mean “government spending is starting to get in the way of getting inflation back to target,” Macklem told a Canadian Senate committee.

“We have built that into our forecast. We do get back to target, but it takes some time,” Macklem added.

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