BOC's Vincent: Firms continue to expect price changes to remain larger and more frequent

<ul><li>Still have a ways to go before pricing behaviour returns to normal</li><li>If firms' recent pricing behaviour settles into a new normal, it could complicate return to low, stable and predictable inflation</li><li>More frequent and large price increases by firms are intimately linked to stronger than expected inflation</li><li>Downward path of inflation has been slower than anticipated, inflation proved to be stickier than many expected</li><li>It is clear we are not out of the woods yet on inflation and unusual amount of uncertainty continues to cloud our view</li></ul><p>Vincent helps set monetary policy in Canada and these comments tilt hawkish. I'm deeply worries about Canadian real estate at the moment as about 2% of mortgages reset per month in the country, leading to a big drag on consumer spending.</p>

This article was written by Adam Button at www.forexlive.com.