Expert warns of food consumption habits amid rising prices
A new survey by Dalhousie University's Agri-Food Analytics Lab asked Canadians about their food consumption habits amid rising prices.
The Bank of Canada raised its overnight rate by 25 basis points to 4.75 per cent on Wednesday, its first increase since pausing hikes in January. The central bank’s key interest rate has not been this high since April 2001.
Several factors led to the bank’s decision to raise the key interest rate, including economic growth in Canada. Gross Domestic Product exceeded expectations in the first quarter of this year, growing by 3.1 per cent.
The central bank says demand in the economy has rebounded, with surprisingly strong consumer spending. Housing market activity has picked up again and the Canadian labour market remains tight.
“Overall, excess demand in the economy looks to be more persistent than anticipated,” reads the release.
In April, inflation increased for the first time in 10 months to 4.4 per cent. The bank still expects inflation to decline to 3 per cent by this summer, but concerns remain that inflation could get stuck above the 2 per cent target.
“Goods price inflation increased, despite lower energy costs,” reads the statement. “Services price inflation remained elevated, reflecting strong demand and a tight labour market.”
Finance Minister Chrystia Freeland says Canada has made meaningful progress, with inflation dropping from its peak of 8.1 per cent last year to 4.4 per cent in April.
“The Bank of Canada has predicted that inflation will fall to 3 per cent this summer,” Freeland said to reporters in Ottawa on Wednesday. “We are very close to the end of this difficult time and to a return to low stable inflation and strong steady growth.”
The federal government has faced criticism from the opposition over its fiscal spending and Conservative Leader Pierre Poilievre is sounding the alarm on Canada’s household debt problem.
“This is on the verge of becoming a crisis and that is an overused term,” Poilievre said during a caucus speech to his party in Ottawa. “As these hundreds of billions of dollars of debt collide with massive increases in interest rates there will be a severe default crisis.”
Global inflation also remains high. Despite this, the economies of the United States and China are beginning to slow down and Europe’s economy has stalled.
The Organization for Economic Co-operation and Development (OECD) projects the global economy to grow moderately by 2.7 per cent in 2023 and global inflation to decline to 6.6 per cent this year, according to its economic outlook.
“Core inflation is proving sticky, on the back of strong service increases and higher profits in some sectors,” reads the OECD Economic Outlook. “Monetary Policy should remain restrictive until there are clear signs that underlying inflationary pressures are durably reduced.”
Going forward, the Bank of Canada’s Governing Council will focus mainly on inflation expectations, wage growth, corporate pricing and excess demand to ensure these factors are in line with the inflation target.
The next scheduled rate announcement is expected on July 12, 2023.
A new survey by Dalhousie University's Agri-Food Analytics Lab asked Canadians about their food consumption habits amid rising prices.
It was evident to the federal government as early as last fall that Loblaw and Walmart might be holdouts to the grocery code of conduct, jeopardizing the project's success.
Royal commentator Afua Hagan writes that when King Charles recently admitted Catherine to the Order of the Companions of Honour, it not only made history, but it reinforced the strong bond between the King and his beloved daughter-in-law.
Charlie Woods failed to advance in a U.S. Open local qualifying event Thursday, shooting a 9-over 81 at Legacy Golf & Tennis Club.
When it comes to cardiovascular fitness, you may tend to focus on activities that move you forward, such as walking, running and cycling.
A recent decision to restrict consular services for fighting-aged Ukrainian men has made a Ukrainian man in Canada feel less certain of his next steps — and worried he could be pulled back to the war.
Ashley Dickey and her mother rented part of the same Coquitlam duplex in three different decades under three different landlords.
A man who fell into a crevasse while leading a backcountry ski group deep in the Canadian Rockies has died.
During a special winner celebration near their hometown, Doug and Enid shared the story of how they discovered they were holding a Lotto Max ticket worth $70 million and how they kept this huge secret for so long.
Mounties in Nanaimo, B.C., say two late-night revellers are lucky their allegedly drunken antics weren't reported to police after security cameras captured the men trying to steal a heavy sign from a downtown business.
A property tax bill is perplexing a small townhouse community in Fergus, Ont.
When identical twin sisters Kim and Michelle Krezonoski were invited to compete against some of the world’s most elite female runners at last week’s Boston Marathon, they were in disbelief.
The giant stone statues guarding the Lions Gate Bridge have been dressed in custom Vancouver Canucks jerseys as the NHL playoffs get underway.
A local Oilers fan is hoping to see his team cut through the postseason, so he can cut his hair.
A family from Laval, Que. is looking for answers... and their father's body. He died on vacation in Cuba and authorities sent someone else's body back to Canada.
A former educational assistant is calling attention to the rising violence in Alberta's classrooms.
The federal government says its plan to increase taxes on capital gains is aimed at wealthy Canadians to achieve “tax fairness.”
At 6'8" and 350 pounds, there is nothing typical about UBC offensive lineman Giovanni Manu, who was born in Tonga and went to high school in Pitt Meadows.