It’s welcome news that inflation is easing – at 7% for August, down from 7.6% a month earlier – but what does this mean for interest rates and the Canadian economy overall?

Scotiabank’s Chief Economist Jean-François Perrault returns this episode to discuss the latest inflation numbers and why interest rates are still expected to rise. While he doesn’t expect a recession ahead for Canada, he says inflation data from September and October are going to be critical and will set the tone for the country’s economy over the next year.

Still trying to get your head around what inflation is in the first place? We have a whole episode dedicated to just that called Inflation 101.

Key moments this episode:

1:10 — Perrault’s take on what a 7% inflation rate means

2:09 — What items contributed most to that rate

3:54 — What’s comforting about the latest StatCan report

4:55 — Why so much was riding on August inflation numbers and why the next few months are crucial

5:47 — Taking a step back and looking at where inflation numbers have been lately

6:24 — Why these numbers actually provide two sources of comfort for experts

7:16 — How do the latest inflation numbers impact interest rate hikes?

9:25 — The Prime Minister’s new inflation relief efforts and its impact. Will that increase inflation?

12:07 — What's next when it comes to inflation numbers?

12:47 — When is inflation going to get back to normal?

13:54 — The r-word: recession. Is that where Canada is headed?

15:22 — Why the hard data might contradict public feeling about a potential recession