As we headed into 2022, I shared 22 financial thoughts for 2022. As it turned out, they were largely accurate, with one meaningful exception. I predicted an increase in interest rates and inflation, but, like many others, the hikes exceeded my more modest view. Looking towards 2023, interest rates and inflation will once again be key to our financial future, so let’s start there.
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Inflation will slowly and fairly steadily decline in 2023: We will likely get back to the range of three to four per cent by the end of the year in Canada. The declines may not be as fast as we hope, but the reduction in inflation will be welcomed on many fronts and will certainly relieve some of the pressure on interest rates.