With Canada’s annual inflation at its highest point in over 30 years, experts say Canadians can anticipate their cost of living to increase significantly, warning that prices will likely not decrease for some time.
According to Statistics Canada, the annual rate of inflation hit 6.7 per cent in March, the fastest year-over-year increase in the consumer price index in over 31 years.
StatCan noted in its consumer price index this is the highest reading since inflation hit 6.9 per cent back in January 1991 when the GST was introduced.
Experts say a number of global factors continue to impact inflation, specifically prices for oil and food, including Russia’s war in Ukraine and supply chain issues due to the COVID-19 pandemic – issues that likely won’t be resolved anytime soon.
Another factor, experts say is that wages have not increased with the sudden rise in inflation, limiting consumers’ purchasing power across income levels.
As a result, everything from filling up your car to eating at a restaurant with friends is expected to cost more than what it used to.
CTVNews.ca looks at what Canadians can expect to cost more right now and how they may be able to save money amid rising inflation.
HOUSING AFFORDABILITY
Last week, the Bank of Canada increased its key policy rate by half a percentage point, raising the benchmark interest rate to one per cent with warnings that more rate hikes are to come this year.
Rising interest rates are expected to encourage saving and curb borrowing and spending, helping cool Canada’s housing market and the cost of goods. But experts warn the dampening effect of higher interest rates won’t be immediate.
Toronto-based real estate expert David Fleming says the interest rate increase will lead to a decrease in housing affordability for homebuyers.
“What we’re talking about with an increase in rates is purchasing power decreasing,” Fleming told CTV’s Your Morning last week.
If someone was previously approved for a home that costs $750,000, for example, they would only be able to afford something that costs $650,000 following a hike in interest rates, he said.
For those who already own a home, particularly anyone holding a variable-rate mortgage, they can expect to see a direct impact on mortgage rates, Fleming said. This also applies to those with personal or home equity lines of credit, as these products are directly linked to the central bank’s benchmark rate.
Those with fixed-rate mortgages, however, will only see a change in rates once they renew their mortgage, Fleming said. He added those in a variable rate mortgage might want to look at locking in their mortgage to save on future hikes.
Experts have said further interest rate hikes may also impact renters, as landlords look to increase rent to balance their rising mortgage payments.
Don Drummond, an economist with Queen’s University in Kingston, Ont., spoke to CTV News Channel on Saturday, saying he believes the BoC should have raised interest rates “quite a while ago” to prevent a higher percentage of Canadians from taking out variable mortgages.
Drummond noted that the default risk could be higher for these borrowers should rates rise further.
“We have an unusually high portion of mortgages are variable mortgages… so the increase in interest rates will feed into mortgages more quickly than it would a few years ago,” he said.
Despite this, Drummond said mortgage rates are still “extraordinarily low by almost any basis in comparison, other than the last couple of years.”
But with costs rising in other aspects of everyday life, such as food and gas, experts say some Canadians might not be able to manage even the slightest increase in mortgage payments or rent.
GAS PRICES
Dan McTeague, president of Canadians for Affordable Energy, says Canadians should brace for an expensive summer at the pumps as the price of oil continues to skyrocket, warning a $2 per litre price tag may become a common occurrence in many regions.
McTeague previously told CP24 the jump is due, in part, to the switch from winter to summer gasoline—a yearly event that typically drives prices up.
However, McTeague said many factors are compounding the price at the pumps, from a weak Canadian dollar and less investment in traditional fuel sources.
But he warns that summer prices could be driven even higher should there be any other disruptions to fuel production or distribution globally, such as a hurricane or pipeline disruptions, making a “bad situation worse.”
“We will see, mark my words, $2 a litre on several days throughout the summer this year,” he said.
Canadians say they are adjusting their budgets and cutting spending elsewhere, such as on groceries or travel plans, to offset the pain at the pumps, with many expressing concerns about being able to afford food or be able to get to work amid rising gas prices.
GROCERY COSTS AND DINING OUT
According to Statistic Canada’s consumer price index, grocery store prices rose 8.7 per cent year-over-year in March 2022, the fastest annual rate since March 2009. StatCan said this was aided by the largest annual increase in dairy and egg prices since February 1983.
Russia’s invasion of Ukraine has also been blamed for jumps in pasta prices and cereal, the latter rising at the fastest annual pace since June 1990.
While they haven’t rose as significantly, StatCan reports that dine-in menu prices are also up 5.4 per cent year-over-year.
Sylvain Charlebois, Dalhousie University professor of food distribution and policy, told CTVNews.ca on Wednesday that food prices are “skyrocketing” and likely won’t get back to pre-pandemic levels for some time.
“Right now, we’re dealing with an unusual perfect storm and that includes higher input costs and, of course, supply chain problems incurred by the pandemic — and that’s not over because the new variant has actually created some new issues globally,” Charlebois said in a telephone interview.
“So we’re not we’re not out of the woods yet when it comes to supply chain problems.”
Charlebois said Canadians should actually expect further price increases for food. Due to rising inflation, Charlebois said food production costs have increased, resulting in higher price tags at grocery stores. Until those costs go down, he says neither will food prices.
However, to help limit the impact of inflation, Charlebois suggests Canadians consider planting a garden and limit their food waste as much as possible. This includes taking stock of what is already in one’s pantry before going grocery shopping, as well as prepping meals ahead of time.
“Whatever you buy, eat it. Make sure you eat it. That’s really the most important thing,” he said.
EXPERT TIPS TO HELP TAME INFLATION
As inflation increases to levels not seen in decades, experts are advising Canadians to take advantage of coupons and points programs, and purchase affordable alternatives where possible to help mitigate the financial strain caused by rising prices.
Laurence Booth, a finance professor at the University of Toronto’s Rotman School of Management, previously told CTVNews.ca in a telephone interview that the rising cost of gas, rent and groceries means Canadians need to “shop around” if they want to find the most affordable option for their budget.
“When they start looking at prices increasing, they substitute other items that they probably wouldn’t have bought except for the fact that what they want has gone up significantly in price,” he said.
“They’ll substitute prices over commodities that haven’t got up to the same degree.”
Booth said the same goes for housing. He said renters and those looking to buy may adjust their searches to a one-bedroom apartment instead of two or a condo instead of a house, solely because of the price difference.
Beyond shopping for more affordable options, Anne Arbour, education manager at the Credit Counselling Society, says rising prices means Canadians need to focus more on tracking their expenses.
“It’s getting back to basics and really knowing your numbers, because you don’t know what impact [inflation] could be having if you don’t know what you’re actually spending,” Arbour previously told CTVNews.ca in a telephone interview.
Arbour said it is important for Canadians to understand where their money is going in order to maintain a budget.
Arbour noted that there are multiple ways to stretch a dollar. She suggests using apps that monitor the flyers in one’s area to find the best deals, as well as rebate programs that offer cashback. Arbour said rewards programs that offer discounts via the collection of points may also be an option.
“As long as you’re not shopping in a way just to get the deals, but you’re actually buying things that you will actually use and not throw out,” she said.
With files from The Canadian Press, as well as CTVNews.ca writers Nicole Bogart and Jennifer Ferreira
EDMONTON – RCMP say a second suspect has been arrested in the killing of an Alberta county worker.
Mounties say 28-year-old Elijah Strawberry was taken into custody Friday at a house on O’Chiese First Nation.
Colin Hough, a worker with Rocky View County, was shot and killed while on the job on a rural road east of Calgary on Aug. 6.
Another man who worked for Fortis Alberta was shot and wounded, and RCMP said the suspects fled in a Rocky View County work truck.
Police later arrested Arthur Wayne Penner, 35, and charged him with first-degree murder and attempted murder, and a warrant was issued for Strawberry’s arrest.
RCMP also said there was a $10,000 reward for information leading to the arrest of Strawberry, describing him as armed and dangerous.
Chief Supt. Roberta McKale, told a news conference in Edmonton that officers had received tips and information over the last few weeks.
“I don’t know of many members that when were stopped, fuelling up our vehicles, we weren’t keeping an eye out, looking for him,” she said.
But officers had been investigating other cases when they found Strawberry.
“Our investigators were in O’Chiese First Nation at a residence on another matter and the major crimes unit was there working another file and ended up locating him hiding in the residence,” McKale said.
While an investigation is still underway, RCMP say they’re confident both suspects in the case are in police custody.
This report by The Canadian Press was first published Sept. 13, 2024.
TORONTO – Alejandro Kirk’s long single with the bases loaded provided the Toronto Blue Jays with a walk-off 4-3 win in the 11th inning of their series opener against the St. Louis Cardinals on Friday.
With the Cardinals outfield in, Kirk drove a shot off the base of the left-field wall to give the Blue Jays (70-78) their fourth win in 11 outings and halt the Cardinals’ (74-73) two-game win streak before 30,380 at Rogers Centre.
Kirk enjoyed a two-hit, two-RBI outing.
Erik Swanson (2-2) pitched a perfect 11th inning for the win, while Cardinals reliever Ryan Fernandez (1-5) took the loss.
Blue Jays starter Kevin Gausman enjoyed a seven-inning, 104-pitch outing. He surrendered his two runs on nine hits and two walks and fanned only two Cardinals.
He gave way to reliever Genesis Cabrera, who gave up a one-out homer to Thomas Saggese, his first in 2024, that tied the game in the eighth.
The Cardinals started swiftly with four straight singles to open the game. But they exited the first inning with only two runs on an RBI single to centre from Nolan Arendao and a fielder’s choice from Saggese.
Gausman required 28 pitches to escape the first inning but settled down to allow his teammates to snatch the lead in the fourth.
He also deftly pitched out of threats from the visitors in the fifth, sixth and seventh thanks to some solid defence, including Will Wagner’s diving stop, which led to a double play to end the fifth inning.
George Springer led off with a walk and stole second base. He advanced to third on Nathan Lukes’s single and scored when Vladimir Guerrero Jr. knocked in his 95th run with a double off the left-field wall.
Lukes scored on a sacrifice fly to left field from Spencer Horwitz. Guerrero touched home on Kirk’s two-out single to right.
In the ninth, Guerrero made a critical diving catch on an Arenado grounder to throw out the Cardinals’ infielder, with reliever Tommy Nance covering first. The defensive gem ended the inning with a runner on second base.
St. Louis starter Erick Fedde faced the minimum night batters in the first three innings thanks to a pair of double plays. He lasted five innings, giving up three runs on six hits and a walk with three strikeouts.
ON DECK
Toronto ace Jose Berrios (15-9) will start the second of the three-game series on Saturday. He has a six-game win streak.
The Cardinals will counter with righty Kyle Gibson (8-6).
This report by The Canadian Press was first published Sept. 13, 2024.
CALGARY – Mired in their first four-game losing skid in 20 years, the Calgary Stampeders are going back to Jake Maier at quarterback on Saturday after he was benched for a game.
It won’t be an easy assignment.
Visiting McMahon Stadium are the Eastern Conference-leading Montreal Alouettes (10-2) who own the CFL’s best record. The Stampeders (4-8) have fallen to last in the Western Conference.
“Six games is plenty of time, but also it is just six games,” said Maier. “We’ve got to be able to get on the right track.”
Calgary is in danger of missing the playoffs for the first time since 2004.
“I do still believe in this team,” said Stampeders’ head coach and general manager Dave Dickenson. “I want to see improvement, though. I want to see guys on a weekly basis elevating their game, and we haven’t been doing that.”
Maier is one of the guys under the microscope. Two weeks ago, the second-year starter threw four interceptions in a 35-20 home loss to the Edmonton Elks.
After his replacement, rookie Logan Bonner, threw five picks in last week’s 37-16 loss to the Elks in Edmonton, the football is back in Maier’s hands.
“Any time you fail or something doesn’t go your way in life, does it stink in the moment? Yeah. But then the days go on and you learn things about yourself and you learn how to prepare a little bit better,” said Maier. “It makes you mentally tougher.”
Dickenson wants to see his quarterback making better decisions with the football.
“Things are going to happen, interceptions will happen, but try to take calculated risks, rather than just putting the ball up there and hoping that we catch it,” said Dickenson.
A former quarterback himself, he knows the importance of that vital position.
“You cannot win without good quarterback play,” Dickenson said. “You’ve got to be able to make some plays — off-schedule plays, move-around plays, plays that break down, plays that aren’t designed perfectly, but somehow you found the right guy, and then those big throws where you’re taking that hit.”
But it’s going to take a team effort, and that includes the club’s receiving corp.
“We always have to band together because we need everything to go right for our receivers to get the ball,” said Nik Lewis, the Stampeders’ receivers coach. “The running back has to pick up the blitz, the o-line has to block, the quarterback has to make the right reads, and then give us a catchable ball.”
Lewis brings a unique perspective to this season’s frustrations as he was a 22-year-old rookie in Calgary in 2004 when the Stamps went 4-14 under coach Matt Dunigan. They turned it around the next season and haven’t missed the playoffs since.”
“Thinking back and just looking at it, there’s just got to be an ultimate belief that you can get it done. Look at Montreal, they were 6-7 last year and they’ve gone 18-2 since then,” said Lewis.
Montreal is also looking to rebound from a 37-23 loss to the B.C. Lions last week. But for head coach Jason Maas, he says his team’s mindset doesn’t change, regardless of what happened the previous week.
“Last year when we went through a four-game losing streak, you couldn’t tell if we were on a four-game winning streak or a four-game losing streak by the way the guys were in the building, the way we prepared, the type of work ethic we have,” said Maas. “All our standards are set, so that’s all we focus on.”
While they may have already clinched a playoff spot, Alouettes’ quarterback Cody Fajardo says this closing stretch remains critical because they want to finish the season strong, just like last year when they won their final five regular-season games before ultimately winning the Grey Cup.
“It doesn’t matter about what you do at the beginning of the year,” said Fajardo. “All that matters is how you end the year and how well you’re playing going into the playoffs so that’s what these games are about.”
The Alouettes’ are kicking off a three-game road stretch, one Fajardo looks forward to.
“You understand what kind of team you have when you play on the road because it’s us versus the world mentality and you can feel everybody against you,” said Fajardo. “Plus, I always tend to find more joy in silencing thousands of people than bringing thousands of people to their feet.”
This report by The Canadian Press was first published Sept. 13, 2024.
