Canadian underlying inflation hit the highest in a decade in November, reinforcing a decision by policy makers this month to refrain from cutting interest rates despite concerns around slowing growth.
Inflation rose 2.2 per cent in November from a year earlier, compared with 1.9 per cent in October, on higher shelter and vehicle costs, Statistics Canada reported Wednesday. The annual reading matched economist expectations. On a monthly basis, the consumer price index fell 0.1 per cent, also matching forecasts.
Core inflation — seen as a better measure of underlying price pressure than the headline figure — increased 2.2 per cent, the highest reading since 2009, from 2.1 per cent in October.
Wednesday’s report bears out the view from the Bank of Canada, which said in its December rate statement that inflation would increase temporarily in the coming months, due to year over year movements in gasoline prices.
“Should gasoline prices remain stable, the headline inflation rate should also cool back down in the second quarter of next year, as the year-ago comparisons become a bit firmer,” Royce Mendes, an economist at Canadian Imperial Bank of Commerce, wrote in a note.
Canada’s currency rose on the report, appreciating 0.2 per cent to $1.3132 per U.S. dollar at 8:47 a.m. Toronto time.
- Canada’s CPI has grown at 1.9 per cent or more on an annual basis for nine straight months, backing the Bank of Canada’s stance to remain patient and leave rates unchanged
- Mortgage interest costs, driven by new lending, and higher prices for passenger vehicles were the largest contributors to the 12-month change in prices; telephone and internet access services were the main downward contributors
- Energy prices rose 1.5 per cent on an annual basis in November, on a weak comparison from a year earlier when gasoline prices were dropping due to the global supply glut
- Consumers paid 6.2 per cent more for fresh or frozen beef in November from a year earlier; the price gains follow disruptions to North American supply chains and strong international demand for Canadian beef
- Following the end of export bans on Canadians pork, consumers paid more on an annual basis for ham and bacon, fresh or frozen pork in November from the prior month
- On a monthly basis, passenger vehicles, fresh fruit and vegetables were the main upward contributors, while travel tours and traveler accommodation weighed on the downside, as package deals to holiday destinations became cheaper
- Goods inflation at 2.3 per cent is the highest since August 2018
Canadian security firm Garda goes hostile in $5.2B bid for British company G4S – CBC.ca
Garda World Security Corp. is making a hostile play for G4S after the British security company spurned its $5.2 billion US offer two weeks ago.
The Montreal-based company appealed directly to G4S shareholders by criticizing the firm’s directors and accusing them of acting in a “cavalier manner” by rejecting several approaches in recent months.
GardaWorld founder, president and CEO Stephane Cretier says that G4S faces profound difficulties and needs an owner and operator that understands the industry and has a well-defined plan.
The reputation of the GS4 has been damaged in recent years, especially for the lack of agents during the 2012 London Olympics to assure security.
Through its subsidiary Fleming Capital Securities, GardaWorld offered 190 pence for each share of the British company. On the London Stock Exchange, G4S shares gained 5.9 per cent at 200.30 pence in Wednesday trading.
GardaWorld unveiled the terms of its proposal on Sept. 14 in an attempt to force the hand of the British company, which has described the move as “highly opportunistic.”
Everything you need to know about the Canada Recovery Benefit, the new program replacing CERB – National Post
Article content continued
How do I know if I qualify for EI?
For the next year, accessing EI benefits is much easier. To qualify for EI, you must have been employed for at least 120 insurable hours in the past 52 weeks. If you received CERB, that 52-week deadline can be extended.
These changes will also establish a minimum weekly benefit rate of $500 for EI recipients, at the same level as CRB.
How much are the CRB payments and how often will I get them?
You will receive $500 per week for up to 26 weeks.
What other benefits are there?
The Canada Recovery Sickness Benefit (CRSB) provides $500 per week for up to two weeks for workers who are sick, or who must self-isolate for reasons related to COVID-19. People who receive paid sick leave from their employer are not eligible.
The Canada Recovery Caregiving Benefit (CRCB) provides $500 per week for up to 26 weeks per household for eligible Canadians unable to work because they must care for a child or family member.
You cannot claim CRCB or CRSB while on EI or CRB.
Is CRB taxable?
All benefits received under the three Canada Recovery Benefit programs are considered taxable income.
Where do I apply for CRB
Just like CERB, you will be able to apply for CRB through the Canada Revenue Agency (CRA) portal.
For more information, see the government’s website.
Canada's GDP grew 3 per cent in July – Yahoo Canada Finance
Canadian GDP expanded by 3 per cent in July, as the economic recovery from the effects of COVID-19 continues.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Statistics Canada says it was the third straight month-over-month increase, but the economy remains 6 per cent below its pre-pandemic level.” data-reactid=”24″>Statistics Canada says it was the third straight month-over-month increase, but the economy remains 6 per cent below its pre-pandemic level.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Growth is also slowing, considering June’s increase was 6.5 per cent.” data-reactid=”25″>Growth is also slowing, considering June’s increase was 6.5 per cent.
All 20 industrial sectors were higher.
Some industries faired better than before the pandemic. Agriculture, utilities, finance and insurance, and real estate rental and leasing sectors surpassed February’s levels.
The manufacturing sector grew 5.7 per cent as factories continued to ramp up production. Accommodation and food services jumped 20.1 per cent, the third straight double digit advance.
“But those figures come off a very low base and are still facing the deepest slump versus year-ago levels. With the resurgence in virus cases, the struggles in those sectors could actually deepen further in the near-term,” said Benjamin Reitzes, director, Canadian rates & macro strategist at BMO.
In another sign of slowing growth going forward, Statistics Canada estimates GDP grew by 1 per cent in August.
“Together, the data are consistent with our call for a roughly 46 per cent annualized gain in Q3 GDP, but the slowing in August, coupled with the surge in the virus in recent weeks, suggest a much smaller gain is in store for Q4,” said Avery Shenfeld, chief economist at CIBC World Markets.
For comparison, annualized GDP fell 38.7 per cent in the second quarter — the worst since Statistics Canada started tracking it in 1961.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Jessy Bains is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jessysbains.” data-reactid=”33″>Jessy Bains is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jessysbains.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Download the Yahoo Finance app, available for Apple and Android.” data-reactid=”34″>Download the Yahoo Finance app, available for Apple and Android.
Lakeview Hotel Investment Corp Announces Second Quarter 2020 Results – Canada NewsWire
Canada's economy to take a hit from the second wave, economist says — and some sectors may never recover – Toronto Star
Toronto is the only North American real estate market considered in bubble territory – The Globe and Mail
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