Canada is seeing a 30 year high right now with inflation after Stats Canada recently announced that the annual pace of inflation had grown to more than 5% and is now at 5.1% in January.
This is said to be the highest that has been seen since 1991. The inflation in Canada is also reportedly fueling more pressure for interest rate hikes.
It is expected that the BOC will look to try and tackle that inflation and interest rate increases have once again coming up for discussion in Canada.
The 5.1% increase in inflation in Canada is driving prices higher for Canadians and increasing the cost of living for millions around the country. From food to gasoline and more.
The recent election saw that this was a big issue for Canadians, affordability around the country, and now once again inflation is a concern with many.
However, if things don’t go as planned there are supposed to be tools that they can turn to in an effort to tackle inflation. A policy change, they warn though, could bring risks along with it even though it is intended to possibly help heal the situation.
As for Canada’s federal Housing Minister he recently indicated that perhaps the government doesn’t want to engage in any change or action that might cause pain for some smaller ‘mom and pop’ real estate investors, or negatively impact them in the long run.
Pressure rising for interest rates to be increased
It is a difficult situation to be in because there are worries that increased interest rates might hurt homeowners and push some into a territory of struggling with affordability for their homes.
Meanwhile, left unattended there are concerns with many Canadians that they will perpetually be priced out of their cities and communities.
The cost of housing and home affordability is one of the biggest concerns with Canadians today. It is expected that this will continue to be a top issue in the country so long as many working Canadians struggle to keep up with trying to afford a home for themselves.
The next policy announcement is expected to be coming on March 2 2022. This is when some suspect there might be that announcement of a rate hike for interest rates in Canada. For now though they’ve suggested that they haven’t arrived at that decision firmly.
Do Canadians support rate hikes?
Some previous polls have suggested that there might be a bit of support for seeing those rate hikes in Canada, but there are others of course who might never want to see that happen. Or at least not any drastic changes.
For a number of Canadians who own their property, some experts have warned that it could mean struggling to afford those changes if things were to dramatically rise in housing costs.
Inflation in Canada is making life harder for many who are already trying to get creative with affording what they need.
Shopping habits are changing for a number of Canadians that are trying to make their dollars go further. It might mean shopping more at places like the dollar store, buying in bulk, using coupons, looking for more deals, signing up for points memberships etc, there are multiple ways Canadians have been looking to tackle inflation.
On average, with inflation that Canadians are facing this year it is expected that it could mean Canadian families will be spending hundreds more on their grocery bills and other goods.