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Rising wage growth no threat to the inflation outlook

The recent acceleration in wage inflation is an encouraging sign, especially considering the excess slack in labour markets and still uncertain economic outlook. For these and other reasons, however, there is limited upside potential to wage growth this year. For the year as a whole, we expect wages and salaries growth to remain below historical norms, with consumer price inflation staying well within the Bank of Canada's 1% to 3% target range.

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