The Bank of Canada is warning that unusually low inflation pressures will persist into 2016 – a new forecast that could further delay future interest rate hikes and send the Canadian dollar lower.
"Inflation is expected to remain well below target for some time, and therefore the downside risks to inflation have grown in importance," the central bank said in a statement Wednesday.
Read more in a full story by Barrie McKenna.
Here are five key facts about inflation, when it's a boon to the economy and when it's harmful.
When people expect prices to barely rise in the future, causing consumers to delay purchases or businesses to put off hiring or raising wages.
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