Situation Analysis - Uncertainty of Inflation

Situation Analysis:

This case study analyses the uncertainty of Inflation, Deflation and

the Validity of the CPI issue government central banks face day to day.

Interest rates and how they affect a country’s economy. Focusing on the

Canadian economy we analyze the inflation threat the government faces

and how they deal with it during cases like when the Canadian dollar gets

weakened compared to the American dollar.

Inflation and deflation which have been reoccurring for decades now

have caused financial confusion in the market system.

Problem Statement:

Inflation has been an issue facing Canada and the world in general

for many decades, increase in interest rate has seen prices rise and this has

made it difficult for citizens to purchase products which used to be

affordable very costly, it also causes unemployment as many people get

laid off during times like this.

Alternative solutions and Recommendation:

Accurate CPI calculations need to be done by the government and

economists. Inflation is definitely coming anytime soon and if the crisis in

confidence can be overcome, people