Electricity, food and taxes are going up but there is some speculation that interest rates (and maybe house prices?) will drop in 2024
British Columbians feeling the pinch of the soaring cost of living may be hoping that 2024 will be better. However, many costs — including electricity and grocery bills — will continue to go up.
Here are a few changes that consumers can expect in 2024:
The B.C. government said in October that the province’s power utility is applying for a 2.3-per-cent rate increase starting in April, adding about $2 a month to the average residential bill.
It says rates are currently 15.6 per cent lower than the cumulative rate of inflation over the last seven years, starting in 2017-18, and 12.4 per cent lower than the 10-year rates plan established by the previous government in 2013.
The ministry says the “modest” rate increase application comes after consideration of a variety of options and their long-term impacts, and the B.C. Utilities Commission is expected to decide on the plan by the end of February.
Those renting a home may see their rent go up, although the amount landlords can hike rent is capped. The B.C. government has set the 2024 maximum allowable rent increase at 3.5 per cent, below the inflation rate of 5.6 per cent.
It applies to rent increases starting Jan. 1, 2024. Landlords can only increase rent once every 12 months, and have to provide three full months’ notice to tenants.
Home prices in B.C. are expected to be “sluggish” heading into the New Year, according to Re/Max’s 2024 forecast. The agency says prices in Metro Vancouver, Canada’s most expensive market, are expected to rise two per cent to an average of $1.52 million, while Victoria prices will likely dip about two per cent to $942,000.
With the economy on track for a downturn, the Mortgage Professionals Canada and Oxford Economics forecasts prices to drop by up to 10 per cent in some Canadian markets.
A Royal LePage forecast says the average price of all properties in Greater Vancouver is expected to increase by three per cent to $1,281,732. The average price of a detached property in Metro Vancouver is expected to rise 2.5 per cent to $1,778,785, according to the report, while the price of a condo will likely go up by four per cent to $795,808.
Canada’s annual food report says most products will have an average inflation rate increase between 2.5 and 4.5 per cent in 2024. That’s down from the up to seven per cent forecast in 2023. However, it does mean grocery bills will likely go up again.
Federal pricing analysis from the U.S. Department of Agriculture projects that food prices will continue to rise through 2024. Food price increases are expected to continue to decelerate but prices are not expected to drop. In 2024, all food prices are predicted to increase about 2.9 per cent, according to the USDA.
The Royal Bank predicts the Bank of Canada will cut rates by 50 basis points in the third quarter of 2024 and another 50 basis points in the fourth quarter. So that would bring the overnight rates to four per cent by the end of 2024, still well above the previous neutral level of two per cent, but down from five per cent.
The bank says the expectation is that rates will hold steady and may even come down toward the end of next year.
The minimum wage in B.C. is $16.75 per hour as of June 1, 2023. There hasn’t been any indication it will rise again this year.
According to the Canadian Taxpayers Federation, nearly every Canadian will pay higher federal income taxes in 2024. This includes an increase in payroll tax, increases in contributions for the Canada Pension Plan and employment insurance premium hikes.
The City of Vancouver is looking at ways to increase licence fees so that property taxes don’t spiral. Licenses for running businesses and adopting exotic birds are among the things that could be getting more expensive. Property taxes are the city’s primary means of raising revenue, and last year Vancouver required a 10.7 per cent increase, the largest in more than a decade. In 2024, the city is looking at a 7.6 per cent tax increase.
In Vancouver, the city will increase its short-term rental business licence fee from $109 to $1,000 a year effective Jan. 1 — an 820 per cent increase. And if you don’t pay on time, a $100 penalty will be added.
The Vancouver park board has approved fee hikes next year for some of the most popular attractions, including city-owned golf courses, the VanDusen Botanical Garden and the Stanley Park train.
The average fee hikes range from four per cent for the Burrard Marina to 13 per cent for parking.
The Championship Golf and Pitch and Putt will go up seven per cent, as will the VanDusen Botanical Garden, Bloedel Conservatory and Celebration Pavilion.
The cost to hold a special event or to film will go up nine per cent, while recreation services and the Stanley Park train will increase by six per cent.
B.C. Ferries’ fares are set to rise an average of 3.2 per cent a year for four years, starting April 1, although actual increases must still be determined and are expected to vary by route.
B.C.’s carbon tax is set to rise from $65 a tonne to $80 a tonne on April 1, 2024. The carbon tax will cost 17 cents a litre of gas, 21 cents a litre of diesel and 15 cents a cubic metre of natural gas.
Meanwhile, the federal government’s carbon tax is also set to increase to $80 a tonne from $65 a tonne on April 1. That will increase the current 14.3 cents a litre carbon tax to 17.6 cents a litre of gas for provinces that don’t have their own carbon tax.
Minimum piece rates for hand harvesting of specified farm crops will increase by 6.9 per cent on Jan. 1, according to the B.C. government.
The increase applies to 15 crops harvested by hand as specified in the employment standards regulation. The hand-harvested crops are peaches, apricots, brussels sprouts, daffodils, mushrooms, apples, beans, blueberries, cherries, grapes, pears, peas, prune plums, raspberries and strawberries.
The increase is based on B.C.’s average annual inflation rate in 2022.
According to the Canadian Taxpayers Federation, the alcohol escalator tax will increase the excise taxes on beer, wine and spirits with inflation on April 1, 2024.
The alcohol escalator will result in a 4.7 per cent increase in the federal excise tax on beer, wine and spirits in 2024. This increase will cost taxpayers about $100 million in 2024-25.
TORONTO – Roots Corp. may have built its brand on all things comfy and cosy, but its CEO says activewear is now “really becoming a core part” of the brand.
The category, which at Roots spans leggings, tracksuits, sports bras and bike shorts, has seen such sustained double-digit growth that Meghan Roach plans to make it a key part of the business’ future.
“It’s an area … you will see us continue to expand upon,” she told analysts on a Friday call.
The Toronto-based retailer’s push into activewear has taken shape over many years and included several turns as the official designer and supplier of Team Canada’s Olympic uniform.
But consumers have had plenty of choice when it comes to workout gear and other apparel suited to their sporting needs. On top of the slew of athletic brands like Nike and Adidas, shoppers have also gravitated toward Lululemon Athletica Inc., Alo and Vuori, ramping up competition in the activewear category.
Roach feels Roots’ toehold in the category stems from the fit, feel and following its merchandise has cultivated.
“Our product really resonates with (shoppers) because you can wear it through multiple different use cases and occasions,” she said.
“We’ve been seeing customers come back again and again for some of these core products in our activewear collection.”
Her remarks came the same day as Roots revealed it lost $5.2 million in its latest quarter compared with a loss of $5.3 million in the same quarter last year.
The company said the second-quarter loss amounted to 13 cents per diluted share for the quarter ended Aug. 3, the same as a year earlier.
In presenting the results, Roach reminded analysts that the first half of the year is usually “seasonally small,” representing just 30 per cent of the company’s annual sales.
Sales for the second quarter totalled $47.7 million, down from $49.4 million in the same quarter last year.
The move lower came as direct-to-consumer sales amounted to $36.4 million, down from $37.1 million a year earlier, as comparable sales edged down 0.2 per cent.
The numbers reflect the fact that Roots continued to grapple with inventory challenges in the company’s Cooper fleece line that first cropped up in its previous quarter.
Roots recently began to use artificial intelligence to assist with daily inventory replenishments and said more tools helping with allocation will go live in the next quarter.
Beyond that time period, the company intends to keep exploring AI and renovate more of its stores.
It will also re-evaluate its design ranks.
Roots announced Friday that chief product officer Karuna Scheinfeld has stepped down.
Rather than fill the role, the company plans to hire senior level design talent with international experience in the outdoor and activewear sectors who will take on tasks previously done by the chief product officer.
This report by The Canadian Press was first published Sept. 13, 2024.
Companies in this story: (TSX:ROOT)
The Canadian Press. All rights reserved.
VANCOUVER – Mediated talks between the union representing HandyDART workers in Metro Vancouver and its employer, Transdev, are set to resume today as a strike that has stopped most services drags into a second week.
No timeline has been set for the length of the negotiations, but Joe McCann, president of the Amalgamated Transit Union Local 1724, says they are willing to stay there as long as it takes, even if talks drag on all night.
About 600 employees of the door-to-door transit service for people unable to navigate the conventional transit system have been on strike since last Tuesday, pausing service for all but essential medical trips.
Hundreds of drivers rallied outside TransLink’s head office earlier this week, calling for the transportation provider to intervene in the dispute with Transdev, which was contracted to oversee HandyDART service.
Transdev said earlier this week that it will provide a reply to the union’s latest proposal on Thursday.
A statement from the company said it “strongly believes” that their employees deserve fair wages, and that a fair contract “must balance the needs of their employees, clients and taxpayers.”
This report by The Canadian Press was first published Sept. 12, 2024.
The Canadian Press. All rights reserved.
MONTREAL – Travel company Transat AT Inc. reported a loss in its latest quarter compared with a profit a year earlier as its revenue edged lower.
The parent company of Air Transat says it lost $39.9 million or $1.03 per diluted share in its quarter ended July 31.
The result compared with a profit of $57.3 million or $1.49 per diluted share a year earlier.
Revenue in what was the company’s third quarter totalled $736.2 million, down from $746.3 million in the same quarter last year.
On an adjusted basis, Transat says it lost $1.10 per share in its latest quarter compared with an adjusted profit of $1.10 per share a year earlier.
Transat chief executive Annick Guérard says demand for leisure travel remains healthy, as evidenced by higher traffic, but consumers are increasingly price conscious given the current economic uncertainty.
This report by The Canadian Press was first published Sept. 12, 2024.
Companies in this story: (TSX:TRZ)
The Canadian Press. All rights reserved.
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