Introduction
Inflation, cost-of-living index
At the beginning of this course of instruction, a relatively low swelling was recorded, however, a somewhat higher pretension rates has been posted in the last five months as energy prices climbed upwards (Consumer charge Index Commentary, 2004). Canadas central bank has forecasted the inflation is expected to reside stable by the end of this year and well into the year 2005. The core inflation is seen falling below 1.5 per cent in the first few months of the year before moving natural covering up to 2 per cent by the end of 2005. Furthermore, a 1.8% gain in this years CPI is low and needs to be raised because of the unexpected increase in crude oil prices. The price index slightly dropped a little in June from the May high but even if it did not increase any further, the year- over-year increase would be almost 10%. The impudent forecast calls for a 2.2% increase in Canadas all Items CPI in 2005 with a risk for a higher inflation rate (http://economics.cucbc.com/economics). In the Banks April Monetary Policy, it expected core inflation to return to 2.0% by the end of 2005. The central bank has forecasted gross domestic product will increase 3.2% in 2006. Both the goods and service producing sectors contributed to the gross domestic product growth.
Manufacturing employment was increase because of strong force vehicle and motor vehicle parts production. Higher production of industrial machinery as well as contributed to the increase in GDP. Moreover, the retail activity grew by 1.1%. The wholesaling activity was up 0.8% as a result of the surge in sales of cars and machinery.
If the CPI rises then the price of new vehicles major power increase as well. That might impact on the consumer purchasing power. The CPI also reflects the oil shock preference for smaller, frugal cars which...
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Some of these reluctant manufacturers have barely made it through the recession and still bare the battle scars. It will take some absolute numbers for them to recover. Their logic makes sense. They want to be able to hold on to new employees once they are hired. Just like consumers, these types of companies just need some confidence that the economy is really back on the road to recovery. Automotive Industry
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