Understand inflation better | The press

Rising inflation hurts the portfolio. Here are articles, reviews and a video to better understand what’s going on.

Posted at 8:07 am

Towards a 75 point hike in the Bank of Canada’s interest rate

Consumer and business inflation expectations have risen over the past quarter, marked by rising food and fuel costs. Under the circumstances, the Bank of Canada is more than likely to hike interest rates by 75 basis points on July 13, economists at RBC and BMO say.

In Canada, inflation rises to 7.7% in May

Consumers were not spared in May. Inflation in the country has risen to 7.7% year on year, the largest annual rise since January 1983, according to data released June 22 by Statistics Canada.

Canadians fight

Nearly three in four Canadians say it is difficult to afford everyday expenses like transportation, housing, food and clothing. The rise in prices increases households’ financial worries and undoubtedly influences their decisions according to this new reality.

How is inflation calculated?

Inflation reflects the Consumer Price Index (CPI). Statistics Canada reported a 6.7% increase in CPI for April 2022 compared to April 2021. We have been reporting rising indices every month for several months.

According to the Bank of Canada, inflation is “a sustained increase in the average price level over time”. And it is the prices of all consumed goods that are constantly analyzed, calculated and weighted. These are detailed by Statistics Canada.

An inflation of promises

In the last budget, Treasury Secretary Eric Girard proposed lowering taxes. Mr Legault confirmed last week that it was being seriously considered.

This option would also have disadvantages.

Leave the candy!

You don’t offer candy to someone who’s just dieted. Yet that is exactly what our politicians are doing, offering whom better to cut taxes and duties to help citizens digest the rise in the cost of living.

Quebec Budget: Why Inflation Favors Éric Girard

There is a tendency to believe that the inflation boom is bad for the government. That it is becoming more difficult to achieve balanced budget and debt targets. However, it is exactly the opposite. Thanks to inflation, Minister Eric Girard has plenty of leeway this year, allowing him to make big new spending.

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