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Natural disasters and inflation in Canada

Author

Listed:
  • Thibaut Duprey
  • Victoria Fernandes

Abstract

How do storms, floods and wildfires affect consumer prices? In the short term, natural disasters can significantly increase volatility in Canada-wide inflation. Over the long term, natural disasters influence inflation in shelter prices, especially when provincial output is already weak relative to trend.

Suggested Citation

  • Thibaut Duprey & Victoria Fernandes, 2025. "Natural disasters and inflation in Canada," Staff Analytical Notes 2025-8, Bank of Canada.
    • Handle: RePEc:bca:bocsan:25-8
    DOI: 10.34989/san-2025-8
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    More about this item

    Keywords

    Climate change; Inflation and prices; Central bank research;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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