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Inflation jumped higher last month, to 3.3%

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Canada’s inflation rate bucked its recent trend of slowing last month and instead rose at a 3.3 per cent annual pace in July, Statistics Canada said Tuesday.

That was an increase from 2.8 per cent the previous month. Gas prices were a major factor pushing up the inflation rate, mostly due to what economists call the base effect.

For most of the past year, gasoline has been a big factor dragging down the overall rate. But that’s not happening as much now, because prices are up again. Pump prices increased by 0.9 per cent in July. The same month a year earlier, they declined by more than 9 per cent.

Gas prices weren’t the only type of energy bill that was a big factor in the inflation rate going up. The price of electricity skyrocketed in the past year, up by 11.7 per cent. That’s more than twice the annual increase of 5.8 per cent clocked in June and the biggest reason for the uptick was a more than doubling of electricity bills in Alberta, which rose by 127.8 per cent in the year up to July.

Grocery bills keep getting more expensive

Food prices, another thing that has been driving up the cost of living, eased somewhat during the month, but they’re still going up at an eye-watering pace.

Grocery prices increased by 8.5 per cent in the year up to July. That’s an easing from 9.1 per cent the previous month, but still three times the overall inflation rate.

Two people by shopping carts in the fruit and vegetable section of a grocery store.
Inflation in the grocery aisle is easing, but food prices are still going up at almost three times the inflation rate. (Cole Burston/CBC)

Not every grocery aisle is getting more expensive, or at the same rate. There was some relief in the produce section, with fresh fruit prices seeing their largest month-over-month decline since February 2008, down 6.5 per cent.

The price of grapes plummeted by more than 40 per cent last month, Statscan says.

While a slowdown in how fast food prices are going up comes as some relief, it remains a crisis, which has prompted calls for drastic measures such as price caps on staple grocery items.

Other countries, including France and Greece, have dabbled with implementing price controls, where retail prices for certain core items are capped at a certain level.

Similar attempts at price controls in the 1970s had disastrous results, but some policy experts say it’s an idea worth exploring, at least on a limited basis.

“It’s not the ’70s anymore, our markets are different,” said Vass Bednar, executive director of the Master of Public Policy Program at McMaster University in Hamilton. “We need to recognize that.”

While Bednar says she doesn’t advocate for a heavy-handed cap on all types of food in perpetuity, she says it makes sense to look into policies that could ensure some basic necessities — baby formula, bread, certain fruits and vegetables — have at least some options that remain affordable.

“We’ve actually already kind of had this policy by accident, when Loblaws froze their prices on their private label brand last year,” she said.

“If you’re feeding a baby formula and you’re on a fixed income, we need to have to have real conversations that are tough about whether and when to intervene in marketplaces to make sure items like that are accessible to people.”

WATCH l Is it time for price caps at the grocery store?

Should food prices be capped?

1 day ago

Duration 1:22

With grocery bills still stubbornly high, some policy makers have suggested the government bring in temporary price caps on certain items, to bring consumers some relief. CBC News interviewed shoppers in Toronto for their thoughts on whether or not that would be a good idea.

Avery Shenfeld, an economist with CIBC, said he doesn’t see the justification for price caps in Canada’s grocery business, given the trends we’re seeing beneath the surface.

“I don’t really think we’re in need of that here,” he said in an interview. “At the end of the day, the best method of fighting inflation isn’t to try to pick one or two prices in the economy and intervene in them. It’s really to control the pace of spending power [and] moderate growth a little bit.”

Food prices aren’t the only thing getting more expensive, either. Mortgages have been another major pressure point in the increasing consumer price index of late, and that problem got worse in July, not better.

Mortgage interest costs have increased by 30.6 per cent in the past year. That’s another record year-over-year gain, and the largest single factor in the increase in the overall inflation rate.

 

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Whitecaps, Timbers to face off in play-in match in Portland

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VANCOUVER – The Vancouver Whitecaps will begin their post-season campaign with a play-in game against the Timbers in Portland on Wednesday.

The ‘Caps (13-13-8) ended the regular season with a 2-1 loss to Real Salt Lake on Saturday and finished eighth in Major League Soccer’s Western Conference standings.

The eighth and ninth spots from each conference meet in a play-in game this week, with the winner going on to face the No. 1 seed in the first round of the playoffs.

Each eighth-place team was set to host the play-in game, but Vancouver announced Friday that its home stadium, B.C. Place, is not available, so the club will cede home-field advantage to Portland (12-11-11), the ninth-place team.

The ‘Caps and Timbers split their three-game series during regular-season play, with each side taking a win, a loss and a draw.

The first round of the MLS playoffs is set to begin next weekend.

This report by The Canadian Press was first published Oct. 19, 2024.

The Canadian Press. All rights reserved.



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Real Salt Lake beats visiting Whitecaps 2-1 to set single-season club record for points

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SANDY, Utah (AP) — Diego Luna scored a tying goal in the 73rd minute and Real Salt Lake added another on an own goal for a 2-1 victory over the Vancouver Whitecaps on Saturday night to set a single-season club record for points.

Real Salt Lake (16-7-11) secured the No. 3 spot in the Western Conference and will face Minnesota in the first round of the Major League Soccer playoffs. RSL reached 59 points this season, topping the 2012 team with 57.

Vancouver (13-13-8) will play the Portland Timbers on Wednesday in a wild-card game for a chance to play top-seeded LAFC.

Luna settled a long cross from Braian Ojeda before taking four touches to slot home a shot inside the far post for his eighth goal of the season.

RSL went ahead in the 83rd when Vancouver goalkeeper Isaac Boehmer misplayed a lofted ball that rolled into the back of the net.

Vancouver midfielder Ryan Gauld opened the scoring in the 58th to become the first player in club history to produce multiple seasons with at least 10 goals and 10 assists.

AP MLS:

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Juan Soto’s 3-run homer in 10th sends Yankees past Guardians 5-2 and into World Series for 41st time

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CLEVELAND (AP) — Juan Soto’s arrival last winter was supposed to be that move that pushed the New York Yankees back to the top.

They’re one step away.

Soto hit a three-run homer with two outs in the 10th inning and the Yankees advanced to their 41st World Series — and first in 15 years — by beating the Cleveland Guardians 5-2 in Game 5 of the AL Championship Series on Saturday night.

Baseball’s biggest brand is going back to October’s main stage.

Soto, who was acquired in a seven-player trade from San Diego in December, pushed the Bronx Bombers into position with one big swing.

This was why he came, for this moment and for so many more.

“We’re right where we belong,” said Yankees general manager Brian Cashman, who pulled off the deal for Soto.

The Yankees will try to win their 28th title against either the New York Mets or Los Angeles Dodgers. Game 6 of the NL Championship Series is on Sunday at Dodger Stadium.

In the third consecutive tight game in three nights at Progressive Field, Austin Wells walked with one out in the 10th and Alex Verdugo followed with a grounder to Guardians second baseman Andrés Giménez, whose soft toss to the bag was dropped by rookie shortstop Brayan Rocchio for an error.

Hunter Gaddis struck out Gleyber Torres and had Soto in a 1-2 count before New York’s stylish outfielder sent a shot over the wall in center. Soto danced down the first-base line and paused to celebrate with his teammates before circling the bases.

“I was just saying to myself, `You’re all over that guy. You’re all over that guy. He ain’t got anything,’” said Soto, who moved alongside his manager, Aaron Boone, as the only New York players to homer in an extra-inning, series-clinching win.

Luke Weaver got the final three outs with Lane Thomas flying out for the last one, which was caught by Soto.

“We get to play for a world championship,” Boone said. “That’s pretty sweet.”

The 25-year-old Soto is eligible for free agency this winter, and Yankees fans chanted “Re-sign Soto!” during the postgame festivities. He’s expected to get a contract upwards of $600 million, and his heroics in Game 5 may have raised his price.

Giancarlo Stanton hit a two-run homer and was named ALCS MVP as the Yankees took care of the Guardians in five games. It wasn’t easy.

New York won the first two at Yankee Stadium without much fanfare or any major drama. However, it was a different story in Cleveland as all three games at Progressive Field were nail-biters.

The Guardians rallied to win Game 3 on two, two-run homers in their last two at-bats, and the Yankees held on to win Game 4 after blowing a four-run lead.

“This was a rollercoaster and we were able to just keep punching back,” Stanton said. “We know there’s much more work to do and it’s only uphill from here and we got to get it done.”

Cleveland just didn’t have enough and a surprising season under first-year manager Stephen Vogt ended just short of a World Series. The franchise remains without a title since 1948, baseball’s current longest drought.

“There’s only one team that gets to win the last game of the year, and unfortunately it’s not going to be us,” Vogt said. “But we accomplished a lot as a group. We got better. We worked extremely hard. I couldn’t be more proud of this group. We just didn’t get quite as far as we wanted to.”

The Yankees are back in the World Series, back where their fans expect them to be every year.

The club’s 82-80, fourth-place finish in the AL East last season led to some “soul searching as an organization” during the winter, according to Boone, who has been widely criticized but is one of just three managers to take New York to playoffs in six of his first seven seasons.

While the team’s core stayed mostly intact, getting Soto in a blockbuster trade on Dec. 7 — New York sent five players to San Diego for the three-time All-Star — accelerated the team returning to title contender.

“That was a good day,” Boone said with a laugh before the game.

Stanton’s 446-foot rocket into the left-field bleachers tied it at 2 in the sixth and chased Tanner Bibee, who had struck out New York’s dangerous DH in his first two at-bats and held the Yankees scoreless for the first five innings.

It was Stanton’s fourth homer in this series — his third in three days — and his 16th in the postseason, moving him into fourth place on the club’s career list behind Bernie Williams (22), Derek Jeter (20) and Mickey Mantle (18).

Before the game, Boone was asked what makes Stanton so good.

“He can hit it harder than anyone, first of all,” Boone said. “So there’s the physical nature of what he does that’s different than just about everyone in the world.”

But Boone went on to compliment Stanton’s discipline at the plate, “his approach, his process, how he studies guys.”

“There’s something that he does when he gets familiarity with people on top of being very physically gifted,” Boone said.

The Guardians took a 2-0 lead in the fifth off Carlos Rodón on Steven Kwan’s RBI single with two outs. But Cleveland missed a big chance for more, leaving the bases loaded when Lane Thomas grounded out on the first pitch to him from Mark Leiter Jr.

TRAINER’S ROOM

Yankees: LHP Nestor Cortes (elbow strain) had another successful live batting practice session. The reliever remains on track to join the Yankees on their World Series roster. Boone said Cortes would throw again early next week. Cortes went 9-10 with a 3.77 ERA in 30 starts.

___

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