Economic 360 Automotive Industry

Introduction
Inflation, CPI
At the beginning of this year, a relatively low inflation was recorded, however, a somewhat higher inflation rates has been posted in the last five months as energy prices climbed upwards ("Consumer Price Index Commentary, 2004"). Canada's central bank has forecasted the inflation is expected to remain 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 few months of the year before moving back up to 2 per cent by the end of 2005. Furthermore, a 1.8% increase in this year's CPI is low an…