MNI BRIEF: BOC Sees No Sign of 1970s Style Inflation Returning

Bank of Canada Deputy Governor Paul Beaudry said Thursday there's no evidence the stubborn kind of inflation seen in the 1970s is re-emerging.

“We’re not talking at all about the scare of being in 1970s inflation,” he said in response to a question from MNI following a speech in Victoria, British Columbia. He also said there's no sign of inflation returning to the 8% range that marked the peak of price gains last year, noting it's come down substantially. The CPI advanced 4.4% in April and has exceeded the Bank's 2% target for two years now. (See: MNI INTERVIEW:BOC Faces Sticky Inflation Fight-Research Winner)

Beaudry also said that while consumer spending has slowed, the pace has been surprisingly mild so far, though the lagged impact of tighter monetary may come into play later. Before the Bank started hiking, a process it resumed on Wednesday, officials said indebted households would be extra sensitive to higher rates.