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

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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.

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.”

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Porsche Is Going Public At €82.50 A Share, Valuing Company At €75 Billion – CarScoops

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Porsche is going public this week and shares will each be available for €82.50 ($79.89), priced at the top of the company’s targeted price range.

The initial public offering (IPO) will see the Volkswagen Group sell 12.5 per cent of the company’s non-voting shares in a move that will raise approximately €9.4 billion ($9.1 billion) and value the automaker at €75.2 billion ($72.8 billion). This will make it Germany’s second-largest listing ever.

No less than 911 million shares will be sold in Porsche and approximately half of the proceeds generated by the listing on Frankfurt’s stock exchange will be distributed to shareholders. The rest of the funds will be used to help fund VW’s transition to all-electric vehicles.

Read More: VW Banking On Porsche IPO To Fund Future Electrification Plans

“In the event of a successful IPO, Volkswagen AG will convene an extraordinary general meeting in December 2022, at which it will propose to its shareholders to distribute in the beginning of 2023 a special dividend of 49 % of the total gross proceeds from the placement of the preferred shares and the sale of the ordinary shares,” the Volkswagen Group described in a statement.

The IPO is going ahead despite the current volatile state of the stock market and widespread economic concerns.

“This [IPO] is a key element for the group, especially because the possible proceeds would give us more flexibility to further accelerate the transformation,” Porsche CFO Arno Antlitz added in a statement earlier this month.

Speaking with the media last week, the head of VW’s works council, Daniela Cavallo, noted that the carmaker could sell more Porsche shares in the future in order to raise additional funds.

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Canada's economy grew by 0.1% in July, bucking expectations it would shrink – CBC News

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Canada’s gross domestic product expanded by 0.1 per cent in July, besting expectations of an imminent decline, as growth in mining, agriculture and the oil and gas sector offset shrinkage in manufacturing.

Statistics Canada reported Thursday that economic output from the oilsands sector increased sharply, by 5.1 per cent during the month. That was a change in direction after two straight months of decline, which brought second-quarter growth to 4.2 per cent thus far. 

The agriculture, forestry, fishing and hunting sector led growth with 3.2 per cent. Unlike the United States and Europe, both of which are facing drought conditions, Canada has had a good year for crop production said Scotiabank economist Derek Holt. 

On the downside, the manufacturing sector shrank by 0.5 per cent, its third decline in four months. Canada’s export market with the United States has softened and global supply chain issues linger, said Holt. The latter are gradually easing, which could create a better picture for the sector in the second half of the quarter. 

Wholesale trade shrank by 0.7 per cent, and the retail sector declined by 1.9 per cent. That’s the smallest output for retail since December. 

“What happened this summer was a big rotation away from goods spending towards services spending,” Holt said. Activities like haircuts, travel or outings to the theatre, made popular with the lifting of pandemic restrictions, leave out retail.

While the economy eked out slight growth in July, the data agency’s early look at August’s numbers shows no growth.

“The economy fared better than anticipated this summer, but the showing still wasn’t much to write home about,” said economist Royce Mendes with Desjardins. “While the data did beat expectations today, the numbers didn’t move the needle enough to see a material market reaction.”

The performance of Canada’s economy throughout the fiscal year — 3.6 per cent growth in Q1 and 4.2 per cent thus far in Q2 — remains one of the best in the world, Holt said. 

Mendes said he expects growth will stay under one per cent this year: half of the Bank of Canada’s two per cent prediction and a third of the growth seen in the first two quarters. 

“We’re definitely slowing, and more of that is coming in a lagged response to higher interest rates and all the challenges of the world economy,” Holt said. “But relative to the rest of the world, for the year as a whole, Canada has been in a sweet spot.”

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Employers and Your Ego Are Constantly at Odds Over Your Value

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When considering the value of an item from a holistic perspective and through the philosophical lenses of existentialism, you realize an item has no value until someone is willing to pay for it, whether it’s a Porsche 911 GT3, a 26th-floor condo in Vancouver, a cup of Starbucks coffee or pair of Levi’s jeans.

Have you ever bought an item, a leather jacket, for example, for $400 and then a month later, it was on sale for $250? The retailer reduced the price of the leather jacket because the number of customers willing to pay $400 had dwindled to the point where it wasn’t selling. Taking this analogy further, the jackets that ended up not selling had no value.

Value doesn’t simply exist. Value is assigned by supply and demand—demand being the keyword. The value of your skills and experience on the job market is determined by how much employers are willing to pay for them, which constantly fluctuates.

It’s no secret most employees feel underpaid. The perception is mostly personal, based on:

  • Your assessment of your worth, which is highly subjective, and
  • The amount of money you need for the lifestyle you created.

 

Neither is relevant.

In general, compensation isn’t arbitrary. A job’s value is determined by:

  • Job-specific educational requirements
  • Skillset required
  • Experience level
  • Responsibilities
  • Location

 

Additionally, those who criticize what employers are offering them never think about the scenario that the employer may have ten employees currently earning $65,000, whereas you want $75,000. It would cause turmoil to hire you at your asking salary.

“Getting paid what you’re worth!” has become a popular sentiment. In reality, though, the value you place on yourself and the value employers in your region are willing to pay you are two entirely different perspectives.

Recently, someone asked me if I felt underpaid. “Nope,” I replied, “I’m getting paid the amount I agreed to when I joined my employer.” I have never understood nor empathized with people who accept jobs and then complain about the pay.

Your ego and sense of entitlement may have convinced you that you deserve $75,000, but you may find that employers disagree with your value assessment. Anyone with a slight sense of business acumen understands an employee’s compensation needs to correlate with the value they bring to their employer.

Hiring involves taking a candidate’s words at face value, especially regarding their work ethic, past results, and ability to work well with others. Gut feel plays a significant role during interviews. Skills and aptitude can be tested, but only to a certain extent.

A hiring manager can only do so much due diligence (multiple interviews, testing, reference checks). Work ethic, ability to achieve results, having the skills they claimed, and being a team player are only proven or disproven after a new hire starts. Most of the tension between job seekers and employers results from job seekers expecting employers to pay them “their value” for abilities that they haven’t actually proven. In contrast, an employer’s best interest is to mitigate hiring risks by starting new hires at the low end of their budgeted salary range.

There’re 2 types of candidates:

  1. Unemployed
  2. Employed

 

Those employed should not accept a starting salary less than 20% higher than their current salary. Unless your motivation is other than money, it’s not worth the stress of starting a new job and reproving yourself for your current salary.

On the other hand, if you’re jobless, your income is $0. Unless the compensation offered is insultingly low, I don’t suggest you try and negotiate for the starting salary (WARNING: Brutal truth ahead.) you made up based on what you think of yourself. Financially and emotionally, having no job and, therefore, no income is a worst-case scenario for many.

I know you’re now asking, “But Nick, how will I get the compensation I feel I deserve if I accept what I’m offered?” Whether employed or not, you need to prove your worth, which requires the following:

 

  1. Getting the job (Proving your worth is impossible without a job.), and
  2. Negotiate and get in writing that upon achieving specific metrics, milestones, revenue targets, or whatever else you can think of, within your first six months, you’ll get a 15% salary increase or whatever percentage you feel appropriate.

 

IMPORTANT: I can’t stress enough to be sure your employment offer letter includes everything you and the hiring manager discussed and agreed to.

 

Number two makes it much easier for an employer to say “Yes” to you since they aren’t taking all the risks of hiring you at a salary you want and then finding out you can’t deliver. Offering this option demonstrates you’re confident in your skills and abilities and aren’t afraid to prove them.

 

Who would you choose if you had two more-or-less equally qualified candidates to choose from and one of the candidates offered you the option of proving their worth before getting the salary they feel they deserve?

______________________________________________________________

 

Nick Kossovan, a well-seasoned veteran of the corporate landscape, offers advice on searching for a job. You can send Nick your questions at artoffindingwork@gmail.com.

 

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