Bank of Canada raises 2027 inflation forecast to 3.1%, citing energy costs
SPY•The Bank of Canada raised its 2027 inflation forecast to 3.1% from 2.0%, citing persistently higher energy costs. It forecast 2026 growth of 1.0% and growth of 2.0% in both 2027 and 2028.
1. Inflation and growth outlook
In its quarterly Monetary Policy Report, the Bank of Canada forecast inflation of 2.9% in 2026, 3.1% in 2027 and 2.2% in 2028. It projected annualized third-quarter growth of 2.0%, up from its July forecast of 1.5%, and fourth-quarter growth of 0.8%.
