adplus-dvertising
Connect with us

Business

Inflation: 1/4 of Canadians cutting back on food purchases – CTV News

Published

 on


Amid soaring prices at grocery stores, a new survey has found that 23.6 per cent of Canadians have had to cut back on the amount of food they were buying.

The survey, conducted by Dalhousie University’s Agri-Food Analytics Lab in partnership with Caddle, was conducted between Sept. 8 and 10 and involved 5,000 Canadians from coast to coast. Over the last year, 8.2 per cent said they’ve had to change their diet to save money on food and 7.1 per cent said they’ve skipped meals because of the cost of groceries.

“There is this sense of desperation out there. Twenty-four percent of Canadians are actually literally buying less food due to higher prices and of that number, almost 70 per cent are women. So it is highly likely that children are impacted by what’s going on with food inflation,” Sylvain Charlebois, director of the Agri-Food Analytics Lab, told CTV News Channel on Tuesday.

300x250x1

The survey also found that nearly three quarters of consumers were changing their buying habits in order to snag better deals at the grocery store. Of the respondents, 33.7 per cent said they were using more loyalty program points to pay for groceries in the last year.

In addition, 32.1 per cent said they were reading flyers more often and 23.9 per cent said they were using more coupons at the grocery store.

Numbers from Statistics Canada released on Tuesday showed that the year-over-year inflation rate was at 7.0 per cent for the month of August. But while the overall inflation rate has declined from the previous month, grocery prices have risen 10.8 per cent since last year — the fastest pace in over 40 years.

“The food inflation rate has outpaced the general inflation rate for several months now. And that’s why Canadians are forced to adopt new strategies,” said Charlebois.

Some Canadians said they’re seeking deals at different types of stores. Of the survey respondents, 19.1 per cent said they visited more discount stores (such as No Frills or FreshCo) for groceries while 11.5 per cent reported visiting dollar stores more frequently to buy food.

In addition, 8.0 per cent of Canadians said they changed their primary grocery store in the past year while 12.9 per cent said they’ve started to visit more than one store. As well, 18.0 per cent said they’re buying food in bulk more often.

“Unlike 40 years ago, when food inflation was an issue for just a few months, Canadians are absolutely aware now that this food inflation ‘boogeyman’ will be around for a while,” Charlebois said.

The survey also found that 40.6 per cent of Canadians said they’re trying to waste less food now compared to 12 months ago, while 19.7 per cent are buying more discounted food that’s about to expire. Atlantic Canada had the highest percentage of consumers buying more close-to-expired food at 29.1 per cent, followed by the Prairies at 19.5 per cent.

“Seeing food waste reduction as the number one thing consumers are doing to cut costs is encouraging,” said Janet Music, co-author of the report, in a news release. “Consumers appear to see food waste reduction as a form of incentive, and not just a way to adopt a more sustainable way of life.”

Some Canadians (15.5 per cent) have also started to grow more of their food. Ontario had the highest percentage of respondents who reported growing their own food at 17.4 per cent, followed by B.C. at 16.2 per cent.

In addition, 21.0 per cent are choosing to buy more food from private-label brands such as No Name and Compliments.

Private-label brands are most popular in Atlantic Canada, where 27.8 per cent said they were buying more store-brand food, followed by Quebec at 22.5 per cent.

Last Friday, the Canadian dollar also dropped to its lowest point in two years against the U.S. dollar. Charlebois says if the loonie continues to slide, inflationary pressures could continue well into the winter.

“If our currency continues to drop, guess what’s going to happen to imports? They’re going to be more costly because our buying power will be backed by a weaker loonie,” he said. “There’s lots of things that we’re concerned about right now and hopefully things will come down. But it is highly unlikely, unfortunately.”

Adblock test (Why?)

728x90x4

Source link

Continue Reading

Business

Why the Bank of Canada decided to hold interest rates in April – Financial Post

Published

 on


Article content

Divisions within the Bank of Canada over the timing of a much-anticipated cut to its key overnight interest rate stem from concerns of some members of the central bank’s governing council that progress on taming inflation could stall in the face of stronger domestic demand — or even pick up again in the event of “new surprises.”

“Some members emphasized that, with the economy performing well, the risk had diminished that restrictive monetary policy would slow the economy more than necessary to return inflation to target,” according to a summary of deliberations for the April 10 rate decision that were published Wednesday. “They felt more reassurance was needed to reduce the risk that the downward progress on core inflation would stall, and to avoid jeopardizing the progress made thus far.”

Article content

300x250x1

Others argued that there were additional risks from keeping monetary policy too tight in light of progress already made to tame inflation, which had come down “significantly” across most goods and services.

Some pointed out that the distribution of inflation rates across components of the consumer price index had approached normal, despite outsized price increases and decreases in certain components.

“Coupled with indicators that the economy was in excess supply and with a base case projection showing the output gap starting to close only next year, they felt there was a risk of keeping monetary policy more restrictive than needed.”

In the end, though, the central bankers agreed to hold the rate at five per cent because inflation remained too high and there were still upside risks to the outlook, albeit “less acute” than in the past couple of years.

Despite the “diversity of views” about when conditions will warrant cutting the interest rate, central bank officials agreed that monetary policy easing would probably be gradual, given risks to the outlook and the slow path for returning inflation to target, according to the summary of deliberations.

Article content

They considered a number of potential risks to the outlook for economic growth and inflation, including housing and immigration, according to summary of deliberations.

The central bankers discussed the risk that housing market activity could accelerate and further boost shelter prices and acknowledged that easing monetary policy could increase the likelihood of this risk materializing. They concluded that their focus on measures such as CPI-trim, which strips out extreme movements in price changes, allowed them to effectively look through mortgage interest costs while capturing other shelter prices such as rent that are more reflective of supply and demand in housing.

Recommended from Editorial

  1. Bank of Canada governor Tiff Macklem during a news conference in Ottawa.

    BoC ‘committed to finishing the job’ on inflation:‘ Macklem

  2. Bank of Canada governor Tiff Macklem at a press conference in Ottawa.

    Time for Macklem to turn before it’s too late

  3. Canada's inflation rate picked up slightly in March, but the consumer price index (CPI) release suggested that core inflation continued to slow.

    ‘Welcome news’ on inflation raises odds of rate cut

They also agreed to keep a close eye on immigration in the coming quarters due to uncertainty around recent announcements by the federal government.

“The projection incorporated continued strong population growth in the first half of 2024 followed by much softer growth, in line with the federal government’s target for reducing the share of non-permanent residents,” the summary said. “But details of how these plans will be implemented had not been announced. Governing council recognized that there was some uncertainty about future population growth and agreed it would be important to update the population forecast each quarter.”

• Email: bshecter@nationalpost.com

Bookmark our website and support our journalism: Don’t miss the business news you need to know — add financialpost.com to your bookmarks and sign up for our newsletters here.

Share this article in your social network

Adblock test (Why?)

728x90x4

Source link

Continue Reading

Business

Meta shares sink after it reveals spending plans – BBC.com

Published

 on


Woman looks at phone in front of Facebook image - stock shot.

Shares in US tech giant Meta have sunk in US after-hours trading despite better-than-expected earnings.

The Facebook and Instagram owner said expenses would be higher this year as it spends heavily on artificial intelligence (AI).

Its shares fell more than 15% after it said it expected to spend billions of dollars more than it had previously predicted in 2024.

300x250x1

Meta has been updating its ad-buying products with AI tools to boost earnings growth.

It has also been introducing more AI features on its social media platforms such as chat assistants.

The firm said it now expected to spend between $35bn and $40bn, (£28bn-32bn) in 2024, up from an earlier prediction of $30-$37bn.

Its shares fell despite it beating expectations on its earnings.

First quarter revenue rose 27% to $36.46bn, while analysts had expected earnings of $36.16bn.

Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, said its spending plans were “aggressive”.

She said Meta’s “substantial investment” in AI has helped it get people to spend time on its platforms, so advertisers are willing to spend more money “in a time when digital advertising uncertainty remains rife”.

More than 50 countries are due to have elections this year, she said, “which hugely increases uncertainty” and can spook advertisers.

She added that Meta’s “fortunes are probably also being bolstered by TikTok’s uncertain future in the US”.

Meta’s rival has said it will fight an “unconstitutional” law that could result in TikTok being sold or banned in the US.

President Biden has signed into law a bill which gives the social media platform’s Chinese owner, ByteDance, nine months to sell off the app or it will be blocked in the US.

Ms Lund-Yates said that “looking further ahead, the biggest risk [for Meta] remains regulatory”.

Last year, Meta was fined €1.2bn (£1bn) by Ireland’s data authorities for mishandling people’s data when transferring it between Europe and the US.

And in February of this year, Meta chief executive Mark Zuckerberg faced blistering criticism from US lawmakers and was pushed to apologise to families of victims of child sexual exploitation.

Ms Lund-Yates added that the firm has “more than enough resources to throw at legal challenges, but that doesn’t rule out the risks of ups and downs in market sentiment”.

Adblock test (Why?)

728x90x4

Source link

Continue Reading

Business

Oil Firms Doubtful Trans Mountain Pipeline Will Start Full Service by May 1st

Published

 on

 

Pipeline

Oil companies planning to ship crude on the expanded Trans Mountain pipeline in Canada are concerned that the project may not begin full service on May 1 but they would be nevertheless obligated to pay tolls from that date.

300x250x1

In a letter to the Canada Energy Regulator (CER), Suncor Energy and other shippers including BP and Marathon Petroleum have expressed doubts that Trans Mountain will start full service on May 1, as previously communicated, Reuters reports.

Trans Mountain Corporation, the government-owned entity that completed the pipeline construction, told Reuters in an email that line fill on the expanded pipeline would be completed in early May.

After a series of delays, cost overruns, and legal challenges, the expanded Trans Mountain oil pipeline will open for business on May 1, the company said early this month.

“The Commencement Date for commercial operation of the expanded system will be May 1, 2024. Trans Mountain anticipates providing service for all contracted volumes in the month of May,” Trans Mountain Corporation said in early April.

The expanded pipeline will triple the capacity of the original pipeline to 890,000 barrels per day (bpd) from 300,000 bpd to carry crude from Alberta’s oil sands to British Columbia on the Pacific Coast.  

The Federal Government of Canada bought the Trans Mountain Pipeline Expansion (TMX) from Kinder Morgan back in 2018, together with related pipeline and terminal assets. That cost the federal government $3.3 billion (C$4.5 billion) at the time. Since then, the costs for the expansion of the pipeline have quadrupled to nearly $23 billion (C$30.9 billion).

The expansion project has faced continuous delays over the years. In one of the latest roadblocks in December, the Canadian regulator denied a variance request from the project developer to move a small section of the pipeline due to challenging drilling conditions.

The company asked the regulator to reconsider its decision, and received on January 12 a conditional approval, avoiding what could have been another two-year delay to start-up.

Adblock test (Why?)

728x90x4

Source link

Continue Reading

Trending