07:31:41 EDT Thu 02 May 2024
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or Name
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CA



Royal Bank of Canada
Symbol RY
Shares Issued 1,408,827,582
Close 2024-02-05 C$ 130.53
Market Cap C$ 183,894,264,278
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Globe says RBC's Fan sees food inflation persist

2024-02-05 06:07 ET - In the News

The Globe and Mail reports in its Monday edition that Canadians hoping for a break on their rising grocery and restaurant bills got a spoonful of disappointment in December, as the annual pace of change in food prices stalled out at 5 per cent after five months of declines. A triple-bylined item led by Mark Rendell reports the worry is that stubbornly fast-rising food prices could interfere with the Bank of Canada's inflation fight, though economists believe more relief is coming. Inflationary pressure on food is typically higher in the winter months because Canada must turn to far-flung locations such as California and Mexico for most of its fruits and vegetables. Those were the only two grocery segments in which prices rose month-over-month in December, a trend expected to reverse as warmer weather comes. The biggest driver of food inflation now comes from meals bought at restaurants. Claire Fan, an economist with RBC, said this likely reflects other price pressures, such as wages, which are expected to ease as the job market cools. American consumers have enjoyed more relief on the food price front than Canadians so far. A weak loonie is contributing to food inflation pressure by making food imports more expensive.

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