The numbers for June are in and, once again, they ain’t pretty.

The national inflation rate hit 8.1% and is likely to stay at or near this level for several more months.

At 8.4%, inflation in Alberta was running above the national average.

Looking ahead, the hope is that recent (and forthcoming) interest rate hikes will start to bring down inflation.

The road back to normal is, however, a long one.

According to the Bank of Canada’s July outlook, the national inflation rate won’t dip back down to about 3% until the end of 2023 and it won’t hit the Bank’s 2% target until the end of 2024.

On top of the slow pace at which inflation is expected to cool, there is growing concern that it will become “entrenched” and turn into a psychological problem that is harder to address.

In a nutshell, if consumers, businesses and workers expect inflation to remain high, this will induce a vicious circle of wage and price increases that will require even higher interest rates and even slower economic growth (if not outright recession) to counter.

This is why it is important to take a long-term view of the current situation: it will take time for interest rate increases to have the desired effect. This is not easy for households with strained budgets or for workers who are watching the purchasing power of their pay erode, but it might help us avoid an even bumpier road ahead.

Answer to the previous trivia question: The James Webb Space Telescope’s primary mirror has a diameter of 6.5 metres.

Today’s trivia question: How many times has the Tour de France been held?