Inflation Goes Down From 4.4% to 3.4%

Two months ago the inflation report had CPI increase by .1%.  This freaked everyone out.  Bond yields increased by .5%.   Bank of Canada reacted and then increased the Prime rate by another .25%.  This then increased the bond rate by another .5%. 

In a matter of 45 days, the 5-year bond rate went up 1%.  

With the new report, inflation has decreased 1%.  

Considering inflation peaked at 8% +, getting down to 3.4% is excellent.   We still have to get down to 2% for the Bank of Canada to start decreasing their Prime rate.