DECEMBER 7TH INTEREST RATE HIKE EXPECTED AFTER INFLATION HELD AT 6.9-PERCENT

Nov 17, 2022

By Jane Brown

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Since Canada’s annual inflation rate held steady at 6.9 percent in October, there is now a greater likelihood the Bank of Canada will hike interest rates again next month.

Gas prices were down last month from September and overall, food prices were down slightly.

But items such as margarine, pasta and butter saw the largest price increases from last year.

Sylvain Charlebois is director of the Agri-Food Analytics Lab at Dalhousie University in Halifax.

He says the good news is that the cost of meat is up 5-percent year over year.

“Five percent is still high but it’s much lower than the average,” Charlebois explained to CP24, “Other than that, produce is exceptionally volatile. I mean lettuce is up 30-percent. I think a lot of people are noticing that lettuce is a problem right now. We ran out of it because California wasn’t able to produce as much as it should have at this time of year.”

And with inflation remaining lofty, experts say an interest rate hike by the central bank is coming December 7th, but that it could be the final increase.

The benchmark interest rate is now at 3.75-percent, up from a pandemic low of 0.25-percent this past March.

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