Economic 360 Automotive Industry

Introduction Inflation, cost-of-living index At the beginning of this course of instruction, a relatively low swelling was recorded, however, a somewhat higher(prenominal) pretension gaits has been posted in the last five-spot months as energy worths climbed upwards (Consumer charge Index Commentary, 2004). Canadas commutation bank has prefigureed the lump is expected to reside stable by the end of this year and well into the year 2005. The core inflation is seen falling below 1.5 per cent in the first some months of the year before moving natural covering up to 2 per cent by the end of 2005. Furthermore, a 1.8% hand in this years CPI is low and needs to be profit because of the unexpected increase in crude oil prices. The price index slightly dropped a little in June from the may high but even if it did not increase whatsoever further, the year- over-year increase would be almost 10%. The impudent forecast calls for a 2.2% increase in Canadas all Items CPI in 20 05 with a risk for a higher inflation rate (http://economics.cucbc.com/economics). In the Banks April Monetary Policy, it expected core inflation to renovation to 2.0% by the end of 2005. The central bank has forecasted gross home(prenominal) product will increase 3.2% in 2006. Both the goods and redevelopment producing sectors contributed to the gross domestic product growth.

Manufacturing employment was increase because of blotto force vehicle and motor vehicle parts production. higher(prenominal) production of industrial machinery as well as contributed to the increase in GDP. Moreover, the retail activity g rew by 1.1%. The wholesaling activity was up! 0.8% as a result of the surge in gross revenue of cars and machinery. If the CPI rises then the price of new vehicles major place increase as well. That might impact on the consumer buying power. The CPI also reflects the oil shock preference for smaller, sparing cars which... If you want to get a full essay, order it on our website: BestEssayCheap.com

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