With Canada's annual inflation rate reaching the central bank's two per cent target, the country's affordability crisis could be peaking.
David Macdonald, a senior economist with the Canadian Centre for Policy Alternatives, says the biggest affordability "pain points" remain housing costs and food.
"At this point those costs are continuing to rise, but they're just not rising as quickly," Macdonald told CTV News Channel on Tuesday. "So the affordability crisis is going to remain as bad as it is now, but it's probably not going to get much worse."
With mortgage interest costs continuing to fall, Macdonald says we should also begin to see rent decreases by the end of 2024.
"Rent is still at an all-time high year-over-year," Macdonald explained. "But I really think we're going to benefit over the next three months in particular from the year-over-year [decreases] in mortgage interest costs."
While vital costs like housing and food remain high, some prices are already falling according to the latest inflation data.
"There are actually a lot of categories now where we're actually seeing deflation," Macdonald said. "This is the case if you're looking for furniture and appliances, if you're looking for clothing or footwear or jewelry."
Like many analysts, Macdonald expects the Bank of Canada to continue cutting interest rates as inflation cools. Most Canadians, however, will still face affordability challenges as the economy adjusts.
"It takes a year-and-a-half to two years for the full benefits of lower interest rates to be seen in the economy," he added. "And so even if we made these big rate drops tomorrow, we wouldn't see [the benefits] until 2026."
You can watch the full interview with Macdonald above.
With files from CTV News Channel
Hurricane Milton strengthens into a Category 5 storm off Mexico and threatens Florida, forecasters say.
Police say that they are investigating an apparent road rage incident in North York that may have involved gunfire.
Sammy Basso, who was the longest living survivor of the rare genetic disease progeria, has died at the age of 28, the Italian Progeria Association said on Sunday.
Scurvy is not just an archaic diagnosis of 18th-century seafarers and doctors should watch for possible cases, according to researchers following a recent case.
As millions in federal funding flow into a Labrador group whose claims of Inuit identity have been rejected by Indigenous organizations across Canada, a national Inuit leader worries the Liberal government is putting the rights of Indigenous Peoples at risk.
Lawyers representing the Ontario man accused of selling hundreds of suicide kits with deadly effect around the globe have filed to intervene in a case in Canada’s highest court, arguing there is no way he can be charged with murder under Canadian law.
A Russian court on Monday sentenced a 72-year-old American in a closed trial to nearly seven years in prison for allegedly fighting as a mercenary in Ukraine.
A British doctor on Monday admitted trying to kill his mother's long-term partner, who stood between him and an inheritance, by injecting the man with poison disguised as a COVID-19 vaccine.
Ceremonies, events and protests are being held across Canada today to mark the anniversary of a Hamas attack on Israel that triggered the ongoing war in Gaza.
Police say that they are investigating an apparent road rage incident in North York that may have involved gunfire.
Lawyers representing the Ontario man accused of selling hundreds of suicide kits with deadly effect around the globe have filed to intervene in a case in Canada’s highest court, arguing there is no way he can be charged with murder under Canadian law.
A totem pole that has stood on the grounds of the Manitoba legislature for more than 50 years has come down.
Billionaire businessman Frank Stronach, who faces multiple sex assault charges, has had his case put over to next month as lawyers work to have the matter moved to a court in Toronto.
On the anniversary of the Hamas-led attacks in Israel, police departments in cities across Canada are increasing their presence in Jewish and Muslim communities, as well as at the locations of planned protests.
As millions in federal funding flow into a Labrador group whose claims of Inuit identity have been rejected by Indigenous organizations across Canada, a national Inuit leader worries the Liberal government is putting the rights of Indigenous Peoples at risk.
Palestinian militants in Gaza fired a barrage of rockets into Israel on Monday as mourners marked the anniversary of the Oct. 7 attack, without disrupting a nearby ceremony.
Lawyers for a man who is also under investigation in the 2007 disappearance of British toddler Madeleine McCann called on Monday for him to be acquitted in his trial on charges of unrelated sexual offences.
A British doctor on Monday admitted trying to kill his mother's long-term partner, who stood between him and an inheritance, by injecting the man with poison disguised as a COVID-19 vaccine.
Ukraine’s military said it struck a major oil terminal Monday in Crimea that provides fuel for Russia’s war effort as Ukrainian President Volodymyr Zelenskyy said the war has entered a key phase.
A Russian court on Monday sentenced a 72-year-old American in a closed trial to nearly seven years in prison for allegedly fighting as a mercenary in Ukraine.
Two Chinese nationals were killed and one was injured in a suicide attack near Karachi’s international airport Sunday evening, China’s embassy in Pakistan said Monday, marking the latest in a string of violence against China’s personnel and investments in the country in recent years.
The Oct. 7 attack by Hamas fighters on Israel last year, and the immediate Israeli retaliation that followed, sent shockwaves throughout the world that have shaken Canada culturally and politically.
A federal inquiry into foreign interference is slated to hear today from security officials working in the office that supports the prime minister.
Justin Trudeau will travel to Laos later this week for the ASEAN summit, marking what his office says will be the first official visit of a Canadian prime minister to the Southeast Asian country.
Sammy Basso, who was the longest living survivor of the rare genetic disease progeria, has died at the age of 28, the Italian Progeria Association said on Sunday.
If your household has recently been hit by a power outage, here are ways to keep your food safe.
New data raises questions about the drinks people consume and the potential risks associated with them, according to researchers at Galway University in Ireland, in partnership with Hamilton’s McMaster University.
A spacecraft blasted off Monday to investigate the scene of a cosmic crash.
The best minds in science will be thrust from academic obscurity into the spotlight this week when the Nobel Prizes in physics, chemistry, and physiology or medicine are announced. However, there is no shortage of Nobel-worthy discoveries: Here are five breakthroughs that haven't resulted in a life-changing call from Stockholm — at least not yet.
Scientists announced on Thursday a milestone in neurobiological research with the mapping of the entire brain of an adult fruit fly, a feat that may provide insight into brains across the animal kingdom, including people.
Janice Small Combs is defending her superstar son, Sean 'Diddy' Combs.
Al Pacino has revealed that he nearly died of COVID-19 in 2020, and shared his view on what happens after death.
Christopher Ciccone, a multihyphenate artist, dancer, designer and younger brother of Madonna, has died. He was 63.
Financial strain can be an uncomfortable burden to bear, especially if you feel that you're doing as much as you can and are barely managing to stay afloat. Personal finance contributor Christopher Liew shares some tips for managing financial stress and digging your way out of debt.
JetBlue’s economy class passengers will no longer find hot meals on the menu aboard transatlantic flights.
Days after a political sign was erected outside Chip Wilson's Vancouver mansion, the waterfront property has been vandalized with graffiti.
Gerontologist Jay Olshansky is used to backlash about his views on human longevity. Decades ago he and his coauthors predicted children, on average, would live to only age 85 — only 1 per cent to 5 per cent might survive until their 100th birthday.
'Eat more vegetables,' doctors and dietitians say over and over. But for many people, it’s hard to do, because they aren’t excited about veggies or just don’t like them.
Travelling on a budget can be stressful, but there are ways you can ensure you're getting the best deal on flights as the holiday season approaches.
Victor Lapena is out as head coach of the Canadian women's basketball team. Canada Basketball says the organization and Lapena mutually agreed to part ways.
During the Los Angeles Lakers' preseason game against the Phoenix Suns, LeBron and Bronny James became the first father/son duo to play together on an NBA team.
Canada's Leylah Fernandez rallied to beat 12th-seeded Diana Shnaider 6-7 (7), 6-3, 6-3 on Monday at the Wuhan Open.
New data from the Insurance Bureau of Canada (IBC) shows that even though claims for auto theft dropped in the first half of 2024 compared to their 2023 peak, the rates of reported theft remain well above those of years prior.
Tesla is recalling more than 27,000 Cybertrucks because the rearview camera image may not activate immediately after shifting into reverse, the fifth recall for the vehicle since it went on sale late last year.
A Pickering, Ont., student going to college to be a mechanic is shocked the engine in his two-year-old car will not be repaired under warranty after the dealership claimed he had been 'over-revving' the engine.
A unique form of clouds made an appearance over the skies of Ottawa on Sunday evening.
Bernie Hicks, known as the ‘Batman of Amherst,’ always wanted to sit in a Batmobile until a kind stranger made it happen.
Bubi’s Awesome Eats, located on University Ave West took to social media to announce the closure on Friday.
Weeneebayko Area Health Authority and the Government of Ontario have awarded a $1.8 billion fixed-price contract to design, build and finance a new Far North hospital.
Manitobans are in cleanup mode after intense winds barreled through southern parts of the province this weekend.
Avry Wortman, 13, scored two touchdowns on Sunday during her team's win in the under 14 Greater Moncton Football Association.
A gargantuan gourd – affectionately named ‘Orangina’ by the urban gardeners who grew it in the front yard of their Vancouver home – earned the massive honour of being named B.C.’s heaviest giant pumpkin Saturday.
Chantal Kreviazuk is set to return to Winnipeg to mark a major milestone in her illustrious musical career.
From the beaches of Cannes to the bustling streets of New York City, a new film by a trio of Manitoba directors has toured the international film festival circuit to much pomp and circumstance.
A 36-year-old woman who was charged with aggravated assault and assault with a weapon following a stabbing last month in Surrey, B.C., has now been charged with murder after the victim died in hospital.
Days after a political sign was erected outside Chip Wilson's Vancouver mansion, the waterfront property has been vandalized with graffiti.
Some people heading up to Mount Cheam in Chilliwack, B.C., got more than they bargained for on Sunday.
Police say that they are investigating an apparent road rage incident in North York that may have involved gunfire.
Lawyers representing the Ontario man accused of selling hundreds of suicide kits with deadly effect around the globe have filed to intervene in a case in Canada’s highest court, arguing there is no way he can be charged with murder under Canadian law.
Billionaire businessman Frank Stronach, who faces multiple sex assault charges, has had his case put over to next month as lawyers work to have the matter moved to a court in Toronto.
A Lethbridge police officer involved in the so-called 'MemeGate' scandal involving former Lethbridge New Democrat MLA Shannon Phillips has been reprimanded.
Two lottery tickets purchased in Alberta won big in draws last week, with prize money totalling more than $1.2 million.
RCMP arrested and charged a 38-year-old Foothills County man in connection with firearms offences as well as animal neglect.
The fate of an Ottawa man who admitted to murdering his wife and stabbing his daughter in broad daylight in 2021 is now in the hands of a jury.
The Ottawa Police Service is investigating after a body was found along a road in Barrhaven. Emergency crews responded to a report of a deceased person at approximately 10:15 a.m. Monday in the 3100 block of Greenbank Road, at Strandherd Drive.
A unique form of clouds made an appearance over the skies of Ottawa on Sunday evening.
Students and supporters from Montreal universities have two protests and vigils planned to mark the anniversary of the current war between Israel and Gaza.
Celine Dion introduced the marquee Dallas Cowboys - Pittsburgh Steelers Sunday Night Football game before getting drenched by orange Gatorade.
The Quebec government has announced details of its 2030 Nature Plan, a $922 million roadmap that should enable Quebec to protect 30 per cent of its territory in the coming years.
Albertans can start booking their annual flu and COVID shots as of Monday, with appointments beginning next week.
A Westlock, Alta., man faces several child pornography charges.
A kidnapping victim was found by police during a traffic stop in northern Alberta earlier this month.
CTV Atlantic meteorologist Kalin Mitchell has details on rain and downpours expected Monday through early Wednesday in the Maritimes, plus an update on Hurricane Milton.
The eight sons of Richard and Sarah Harvie from Gormanville, N.S., are believed to be the most siblings from one family, from either North America or the British Commonwealth, to serve in the Second World War.
New Brunswick Progressive Conservative Leader Blaine Higgs is promising synagogues, mosques, churches and community organizations more money for security measures, including the installation of surveillance cameras.
Power is restored across southern Manitoba after a weekend windstorm wreaked havoc in several communities.
A 16-year-old male has died following a shooting over the weekend.
A totem pole that has stood on the grounds of the Manitoba legislature for more than 50 years has come down.
Regina resident Murray Yagelniski says a city-owned tree on his property is the root of the issue behind his basement flooding.
The Saskatchewan Party says it plans to improve health services for women by providing them with a self-screening kit for HPV as an alternative to the Pap test.
As campaigning continues in the lead up to election day in Saskatchewan, a date and time has been chosen for this year's leaders' debate.
Jalen Belle-McCormack, 20, from Toronto, is currently wanted on a warrant in connection to a shooting at a Waterloo business on May 18.
According to police, officers responded to reports of a stabbing in the area of Victoria Street North and St. Leger Street around 5:30 a.m. Sunday.
Ceremonies, events and protests are being held across Canada today to mark the anniversary of a Hamas attack on Israel that triggered the ongoing war in Gaza.
The Saskatchewan Party says it plans to improve health services for women by providing them with a self-screening kit for HPV as an alternative to the Pap test.
As campaigning continues in the lead up to election day in Saskatchewan, a date and time has been chosen for this year's leaders' debate.
A permanent memorial at the site of the 2018 Humboldt Broncos bus crash is about to be a step closer.
The North Bay Battalion hockey team is mourning the loss of a former player who died at 23 after a battle with cancer.
One man has been charged after a nearly four-hour armed standoff in Attawapiskat First Nation ended without incident Sunday afternoon.
At a meeting on Monday afternoon, Greater Sudbury's planning committee will vote on a plan to convert the former St. Bernadette's school on Auger Street into 74 residential units.
More than five years after a hit-and-run crash left a London, Ont. man with life-altering injuries, his family is asking for help. They want to remodel their newly purchased home to accommodate 23 year old Tristan Roby.
Hurricane Milton strengthens into a Category 5 storm off Mexico and threatens Florida, forecasters say.
Anyone calling 911 across parts of midwestern Ontario Monday morning may be experiencing what's being escribed as "technical difficulties."
Officers arrested a man accused of pointing a firearm at two people in Barrie over the weekend.
A Severn Township man accused in a sexual assault investigation was granted bail on Monday.
A 22-year-old Barrie man faces charges in connection with an alleged stabbing over the weekend.
Students in Sports and Recreation Management at Lambton College have been given the opportunity to work alongside the Detroit Tigers and Detroit Red Winds through their Fundraising and Sport Sponsorship course.
U.S. Customs and Border Protection officers seized $17,000 in unreported cash at the Ambassador Bridge.
LaSalle police have seized a quantity of drugs after a vehicle stop.
Days after a political sign was erected outside Chip Wilson's Vancouver mansion, the waterfront property has been vandalized with graffiti.
A 36-year-old woman who was charged with aggravated assault and assault with a weapon following a stabbing last month in Surrey, B.C., has now been charged with murder after the victim died in hospital.
New Democrat David Eby, B.C. Conservative John Rustad and Sonia Furstenau set to square off in televised debate Tuesday.
Nearly two years after a man was stabbed to death in downtown Kelowna, RCMP have made an arrest in the case.
NDP Leader David Eby is promising to offer a $75-million loan forgiveness program to entice doctors, nurses and heath professionals to expand health-care services in rural British Columbia.
Three young suspects have been arrested in connection with a swarming attack on a teenager in B.C.'s Okanagan last week – and authorities have asked the public to stop circulating disturbing videos of the incident.
A Lethbridge police officer involved in the so-called 'MemeGate' scandal involving former Lethbridge New Democrat MLA Shannon Phillips has been reprimanded.
Lethbridge police say a man who escaped from a psychiatric ward at the Chinook Regional Hospital has been found.
While the summer may be over, construction season in Lethbridge is not.
Greater Sudbury in partnership with the Organization for Economic Co-operation and Development, is hosting the organization's annual mining conference.
As part of an ongoing investigation, provincial police are seeking the public’s assistance in locating a Kubota tractor stolen in North Shore Township, Ont., last month.
A 33-year-old man was arrested Saturday for allegedly spraying bear mace at three individuals in northwestern Ontario.
As millions in federal funding flow into a Labrador group whose claims of Inuit identity have been rejected by Indigenous organizations across Canada, a national Inuit leader worries the Liberal government is putting the rights of Indigenous Peoples at risk.
He may not have logged the fastest time or even gone the full distance, but residents of a Newfoundland town agree the goat who unexpectedly joined the local weekend half marathon was the event's undisputed champion.
A mother in a community where the cost of living is one of the highest in the country says grocery prices are 'inhumane' and retailers are putting profits ahead of people’s basic human right to food.
The Shopping Trends team is independent of the journalists at CTV News. We may earn a commission when you use our links to shop. Read about us.
