Canadian deputy sees lower inflation and growth

David Longworth, the deputy governor of the Bank of Canada, said Canadian inflation looks to be slower than projected in July.

"The central bank continues to expect that both total CPI inflation and core inflation will converge on the 2 per cent inflation target in the second half of 2009," Longworth told the Canadian Association for Business Economists. "However, the recent decline in the spot and futures prices of energy means that the temporary spike in total CPI inflation between now and