My professional college, FP Canada, released its updated Assumption Guidelines at the end of April. I was surprised to see that the assumption they would have us use dropped from 2.1% for 2019 to 2.0% for 2020. I would have expected inflation to go up as inventories dropped and Canadians scrambled for goods and services through the pandemic. This article is a good reminder of how diversified the Consumer Price Index is and how pent-up demand in some areas are balanced by accumulating inventories in other areas.
