Tombe, TrevorChen, Yu2022-09-122022-09-122022-09-10Chen, Y., & Tombe, T. (2022). The Rise (And Fall?) of Inflation in Canada: A Detailed Analysis of Its Post-Pandemic Experience (SSRN Scholarly Paper No. 4215492). https://papers.ssrn.com/abstract=4215492http://hdl.handle.net/1880/115204Canada's inflation rate rose from 3.1 percent in June 2021 to 8.1 percent one year later. What's behind this rapid surge? And will higher interest rates ease the pressure? We explore these questions with a detailed analysis of recently rising inflation. We find a few items dominate, especially energy and items sensitive to oil prices. To separate demand- from supply-driven inflation, we use detailed household expenditure data and find rising inflation is primarily the latter. We also find items with normally transitory price changes or those highly sensitive to interest rates also account for nearly all of inflation's rise. While much uncertainty remains, time and tighter monetary policy may likely help decrease inflation.engUnless otherwise indicated, this material is protected by copyright and has been made available with authorization from the copyright owner. You may use this material in any way that is permitted by the Copyright Act or through licensing that has been assigned to the document. For uses that are not allowable under copyright legislation or licensing, you are required to seek permission.inflation; supply shocks; monetary policyjournal article435-2019-010010.11575/PRISM/40223