Canada's finance minister calls inflation rate dropping within target range a 'milestone moment'
Canada's inflation rate dropping to 2.8 per cent in June is a "milestone moment" that Canadians should find some relief in, according to Deputy Prime Minister and Finance Minister Chrystia Freeland.
Down from 3.4 per cent in May, the annual inflation rate has not been within the Bank of Canada's target range of between one and three per cent since March 2021.
"That is a significant moment. It should provide a lot of relief to Canadians," Freeland said, speaking via teleconference with reporters from Delhi, following her participation in a G20 finance ministers' meeting. "And I really want to thank Canadians, it has been a really tough time economically since COVID first hit, since we had a recession, followed by all the strains of reopening. And this is really a good moment."
The current rate is the lowest that inflation has been in more than two years, down from a high of 8.1 per cent in June of last year. And as Freeland pointed out, inflation in Canada is now lower than in every other G7 country, where rates range from 8.7 per cent in the UK to 3.2 per cent in Japan.
"It has been a real struggle for Canadians and the Canadian economy to get back down to 2.8 per cent, and I am really grateful to everyone who has sort of [stayed] the course," Freeland said.
Asked whether she shares the Bank of Canada's outstanding concern—identified when the central bank raised interest rates again last week—that inflation will stall out above 2 per cent until 2025, Freeland declined to "make predictions or forecasts."
"I do not have a crystal ball," Freeland said. "I do think that today is a milestone moment."
While Freeland is marking Canada hitting this key inflation metric, many Canadians are still struggling with the impacts of inflation on their daily lives, particularly at the grocery store checkout.
"While Tuesday's inflation numbers show some progress in stopping prices from rising as quickly, we know there is little chance of prices coming down meaningfully any time soon. This is especially true for the cost of food as grocery inflation remains stubbornly high," NDP MP and finance critic Daniel Blaikie in a statement. "This news will not bring relief for Canadians struggling with record prices."
Conservative MP and finance critic Jasraj Singh Hallan called the Liberals "out of touch" for "telling Canadians who are struggling to buy groceries, pay rent, or put gas in their car, that everything is OK."
"Canadians are facing thousands of dollars of new costs that aren’t going away because of Trudeau’s massive inflationary spending and tax hikes," he said.
The finance minister said she remains "mindful" that food prices in particular remain high, pointing to the recently-issued one-time grocery rebate for lower-income Canadians.
"I recognize that the grocery rebate does not compensate everyone for all of the costs that inflation has imposed. But, for a family of four, it's close to $500, and that is support that's really needed, coming at an important time. It's, you know, to give people a little bit of relief," Freeland said.
At the same time, Freeland put the spotlight on Canadian businesses—whom the federal government helped keep afloat with financial aid during the thick of the COVID-19 pandemic economic shutdown— to recognize that "food prices need to come down."
"I am really counting on Canadian companies, Canadian food retailers to be responsible right now and to support Canadians and the Canadian economy by a responsible approach to their pricing," said the finance minister.
IN DEPTH
Budget 2024 prioritizes housing while taxing highest earners, deficit projected at $39.8B
In an effort to level the playing field for young people, in the 2024 federal budget, the government is targeting Canada's highest earners with new taxes in order to help offset billions in new spending to enhance the country's housing supply and social supports.
'One of the greatest': Former prime minister Brian Mulroney commemorated at state funeral
Prominent Canadians, political leaders, and family members remembered former prime minister and Progressive Conservative titan Brian Mulroney as an ambitious and compassionate nation-builder at his state funeral on Saturday.
'Democracy requires constant vigilance' Trudeau testifies at inquiry into foreign election interference in Canada
Prime Minister Justin Trudeau testified Wednesday before the national public inquiry into foreign interference in Canada's electoral processes, following a day of testimony from top cabinet ministers about allegations of meddling in the 2019 and 2021 federal elections. Recap all the prime minister had to say.
As Poilievre sides with Smith on trans restrictions, former Conservative candidate says he's 'playing with fire'
Siding with Alberta Premier Danielle Smith on her proposed restrictions on transgender youth, Conservative Leader Pierre Poilievre confirmed Wednesday that he is against trans and non-binary minors using puberty blockers.
Supports for passengers, farmers, artists: 7 bills from MPs and Senators to watch in 2024
When parliamentarians return to Ottawa in a few weeks to kick off the 2024 sitting, there are a few bills from MPs and senators that will be worth keeping an eye on, from a 'gutted' proposal to offer a carbon tax break to farmers, to an initiative aimed at improving Canada's DNA data bank.
Opinion
opinion Don Martin: Gusher of Liberal spending won't put out the fire in this dumpster
A Hail Mary rehash of the greatest hits from the Trudeau government’s three-week travelling pony-show, the 2024 federal budget takes aim at reversing the party’s popularity plunge in the under-40 set, writes political columnist Don Martin. But will it work before the next election?
opinion Don Martin: The doctor Trudeau dumped has a prescription for better health care
Political columnist Don Martin sat down with former federal health minister Jane Philpott, who's on a crusade to help fix Canada's broken health care system, and who declined to take any shots at the prime minister who dumped her from caucus.
opinion Don Martin: Trudeau's seeking shelter from the housing storm he helped create
While Justin Trudeau's recent housing announcements are generally drawing praise from experts, political columnist Don Martin argues there shouldn’t be any standing ovations for a prime minister who helped caused the problem in the first place.
opinion Don Martin: Poilievre has the field to himself as he races across the country to big crowds
It came to pass on Thursday evening that the confidentially predictable failure of the Official Opposition non-confidence motion went down with 204 Liberal, BQ and NDP nays to 116 Conservative yeas. But forcing Canada into a federal election campaign was never the point.
opinion Don Martin: How a beer break may have doomed the carbon tax hike
When the Liberal government chopped a planned beer excise tax hike to two per cent from 4.5 per cent and froze future increases until after the next election, says political columnist Don Martin, it almost guaranteed a similar carbon tax move in the offing.
CTVNews.ca Top Stories
DEVELOPING 'Numerous' officers shot in 'active situation' in Charlotte, North Carolina, police say
'Numerous law enforcement officers' have been shot in an “active situation” in Charlotte, North Carolina, police say.
Toronto police arrest 12 people, lay 102 charges in major credit card fraud scheme
Toronto police say 12 people are facing a combined 102 charges in connection with an investigation into a major credit fraud scheme.
B.C. premier says Vancouver speech praising Hamas attack was 'most hateful' he can imagine
B.C. Premier David Eby has joined other politicians denouncing remarks at a demonstration in Vancouver where protesters chanted “long live Oct. 7,” praising that day's attacks by Hamas on Israel.
International students will be allowed to work 24 hours a week starting in September
Immigration Minister Marc Miller says international students will be able to work off-campus for up to 24 hours per week starting in September.
MPs targeted by Chinese hackers question why Canada didn't tell them
Members of Parliament are questioning why Canadian security officials did not inform them that they had been the target of Beijing-linked hackers, after learning from the FBI that the international parliamentary alliance they are a part of was in the crosshairs of the Chinese cyberattack in 2021.
Norovirus spreading at 'higher frequency' than expected in Canada
Norovirus is spreading at a 'higher frequency' than expected in Canada, specifically, in Ontario and Alberta, according to the Public Health Agency of Canada.
Less alcohol, or none at all, is one path to better health
Moderate drinking was once thought to have benefits for the heart, but better research methods have thrown cold water on that.
In a world first, king-size cigarettes in Canada must feature one of these warnings starting Tuesday
Tobacco manufacturers have until Tuesday to ensure every king-size cigarette produced for sale in Canada has a health warning printed directly on it.
WATCH So you haven't filed your taxes yet…
The clock is ticking ahead of the deadline to file a 2023 income tax return. A personal finance expert explains why you should get them done -- even if you owe more than you can pay.
Local Spotlight
Canada's oldest hat store still going strong after 90 years
Since 1932, Montreal's Henri Henri has been filled to the brim with every possible kind of hat, from newsboy caps to feathered fedoras.
Road closed in Oak Bay, B.C., so elephant seal can cross
Police in Oak Bay, B.C., had to close a stretch of road Sunday to help an elephant seal named Emerson get safely back into the water.
B.C. breweries take home awards at World Beer Cup
Out of more than 9,000 entries from over 2,000 breweries in 50 countries, a handful of B.C. brews landed on the podium at the World Beer Cup this week.
Kitchener family says their 10-year-old needs life-saving drug that cost $600,000
Raneem, 10, lives with a neurological condition and liver disease and needs Cholbam, a medication, for a longer and healthier life.
Haida Elder suing Catholic Church and priest, hopes for 'healing and reconciliation'
The lawyer for a residential school survivor leading a proposed class-action defamation lawsuit against the Catholic Church over residential schools says the court action is a last resort.
'It was instant karma': Viral video captures failed theft attempt in Nanaimo, B.C.
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.
Fergus, Ont. man feels nickel-and-dimed for $0.05 property tax bill
A property tax bill is perplexing a small townhouse community in Fergus, Ont.
Twins from Toronto were Canada's top two female finishers at this year's Boston Marathon
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.
Mystery surrounds giant custom Canucks jerseys worn by Lions Gate Bridge statues
The giant stone statues guarding the Lions Gate Bridge have been dressed in custom Vancouver Canucks jerseys as the NHL playoffs get underway.