Canada’s inflation rate was 0.1 per cent in August, Statistics Canada says, the same level it was at in July.
Economists had been expecting the figure to come in at around 0.4 per cent, but gasoline and airline tickets dragged down the overall rate.
Gas prices were down by 11.1 per cent in August, compared to where they were a year ago. Prices for air travel, meanwhile, declined by 16 per cent.
“Demand for air travel has fallen during the pandemic and airlines continue to offer travel discounts to encourage a return to travel,” the data agency said.
Gas and plane tickets got cheaper but not everything did. There was a 7.2 per cent rise in the cost of personal care products, a category that includes things like haircuts.
“This increase was mainly attributable to higher prices for haircuts and hairdressing, as increased costs related to safety measures to prevent the spread of COVID-19 were passed along to consumers,” Statscan said.
Lisa Kramer, a professor of finance at the University of Toronto, says she was not surprised that category saw such a jump in prices because that industry is dealing directly with the unprecedented impact of COVID-19.
Physical distancing requirements saw many salons have to close their doors for several weeks in March and April, and even now that most have reopened they have limited capacity, reduced customer loads and added costs for things like cleaning supplies.
“Their revenues have thinned but their expenses have risen so in an effort to remain solvent many of them have had to consider creative solutions,” Kramer said in an interview with CBC News. “To partially offset that, many have implemented temporary surcharges to stay afloat.”
Many hair salons have added COVID surcharges to customer bills to offset the added costs of pandemic-related precautions. (Evan Mitsui/CBC)
Indeed, many have added a so-called COVID surcharge to pay for the added expenses of things like personal protective equipment and more intense and frequent cleanings, but businesses say those fees aren’t close to letting them make ends meet.
Lisa Friesen, owner of Vivid Hair Design and Spa in Calgary, has added a five per cent surcharge to customers’ bills, but she says it is nowhere near enough to offset the higher costs and lost revenue of not being able to serve as many clients in the day.
“Our rents haven’t gone down and our taxes haven’t gone down but we can see less clients than we were seeing before,” she said in an interview.
“I try stay in a positive space [that] things will come back … but it’s devastating, it really is.”
Other prices rose too
Haircuts aren’t the only thing getting more expensive. Jewelry prices rose 6.8 per cent, largely due to record prices for gold.
There was wide variation across the country, too, as the inflation rate was positive in five provinces, but negative in the other five.
The rate is well below the range that the Bank of Canada targets in considering where to set its benchmark interest rate. When inflation is low, the bank tends to cut its rate to encourage borrowing to invest. When the rate is high, the bank hikes its rate to cool things down.
“With little in the way of inflation, the Bank of Canada has no reason to change its communication that interest rates will remain low for an extended period of time in order to support a stronger economic recovery,” he said.
TORONTO – Canada Goose Holdings Inc. says it has signed a deal that will result in the creation of its first eyewear collection.
The deal announced on Thursday by the Toronto-based luxury apparel company comes in the form of an exclusive, long-term global licensing agreement with Marchon Eyewear Inc.
The terms and value of the agreement were not disclosed, but Marchon produces eyewear for brands including Lacoste, Nike, Calvin Klein, Ferragamo, Longchamp and Zeiss.
Marchon plans to roll out both sunglasses and optical wear under the Canada Goose name next spring, starting in North America.
Canada Goose says the eyewear will be sold through optical retailers, department stores, Canada Goose shops and its website.
Canada Goose CEO Dani Reiss told The Canadian Press in August that he envisioned his company eventually expanding into eyewear and luggage.
This report by The Canadian Press was first published Sept. 19, 2024.
Almost seven years since news broke of an alleged conspiracy to fix the price of packaged bread across Canada, the saga isn’t over: the Competition Bureau continues to investigate the companies that may have been involved, and two class-action lawsuits continue to work their way through the courts.
Here’s a timeline of key events in the bread price-fixing case.
Oct. 31, 2017: The Competition Bureau says it’s investigating allegations of bread price-fixing and that it was granted search warrants in the case. Several grocers confirm they are co-operating in the probe.
Dec. 19, 2017: Loblaw and George Weston say they participated in an “industry-wide price-fixing arrangement” to raise the price of packaged bread. The companies say they have been co-operating in the Competition Bureau’s investigation since March 2015, when they self-reported to the bureau upon discovering anti-competitive behaviour, and are receiving immunity from prosecution. They announce they are offering $25 gift cards to customers amid the ongoing investigation into alleged bread price-fixing.
Jan. 31, 2018: In court documents, the Competition Bureau says at least $1.50 was added to the price of a loaf of bread between about 2001 and 2016.
Dec. 20, 2019: A class-action lawsuit in a Quebec court against multiple grocers and food companies is certified against a number of companies allegedly involved in bread price-fixing, including Loblaw, George Weston, Metro, Sobeys, Walmart Canada, Canada Bread and Giant Tiger (which have all denied involvement, except for Loblaw and George Weston, which later settled with the plaintiffs).
Dec. 31, 2021: A class-action lawsuit in an Ontario court covering all Canadian residents except those in Quebec who bought packaged bread from a company named in the suit is certified against roughly the same group of companies.
June 21, 2023: Bakery giant Canada Bread Co. is fined $50 million after pleading guilty to four counts of price-fixing under the Competition Act as part of the Competition Bureau’s ongoing investigation.
Oct. 25 2023: Canada Bread files a statement of defence in the Ontario class action denying participating in the alleged conspiracy and saying any anti-competitive behaviour it participated in was at the direction and to the benefit of its then-majority owner Maple Leaf Foods, which is not a defendant in the case (neither is its current owner Grupo Bimbo). Maple Leaf calls Canada Bread’s accusations “baseless.”
Dec. 20, 2023: Metro files new documents in the Ontario class action accusing Loblaw and its parent company George Weston of conspiring to implicate it in the alleged scheme, denying involvement. Sobeys has made a similar claim. The two companies deny the allegations.
July 25, 2024: Loblaw and George Weston say they agreed to pay a combined $500 million to settle both the Ontario and Quebec class-action lawsuits. Loblaw’s share of the settlement includes a $96-million credit for the gift cards it gave out years earlier.
Sept. 12, 2024: Canada Bread files new documents in Ontario court as part of the class action, claiming Maple Leaf used it as a “shield” to avoid liability in the alleged scheme. Maple Leaf was a majority shareholder of Canada Bread until 2014, and the company claims it’s liable for any price-fixing activity. Maple Leaf refutes the claims.
This report by The Canadian Press was first published Sept. 19, 2024.
Companies in this story: (TSX:L, TSX:MFI, TSX:MRU, TSX:EMP.A, TSX:WN)
TORONTO – TD Bank Group, which is mired in a money laundering scandal in the U.S., says chief executive Bharat Masrani will retire next year.
Masrani, who will retire officially on April 10, 2025, says the bank’s, “anti-money laundering challenges,” took place on his watch and he takes full responsibility.
The bank named Raymond Chun, TD’s group head, Canadian personal banking, as his successor.
As part of a transition plan, Chun will become chief operating officer on Nov. 1 before taking over the top job when Masrani steps down at the bank’s annual meeting next year.
TD also announced that Riaz Ahmed, group head, wholesale banking and president and CEO of TD Securities, will retire at the end of January 2025.
TD has taken billions in charges related to ongoing U.S. investigations into the failure of its anti-money laundering program.
This report by The Canadian Press was first published Sept. 19, 2024.
