Inflation Rate Canada - The Lowest in Almost 2 Years

 Inflation rate Canada - Well, Statistics Canada has just released the latest inflation numbers for May. It shows the rate of inflation has dropped to 3.4 per cent. Scott Peterson has been going over the numbers. Okay, so this is good news. What does this mean for Canadians? It is good news that this is the lowest inflation we've seen in two years. And so it's going in the right direction. 

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So maybe this will be the end of those raid hikes we're also seeing from the Bank of Canada. But the good news is that it's doing what the Bank of Canada wants it to do, which has come with a downside. Uh, but there are a lot of questions, earthy, about how much credit we can give to the Bank of Canada for this happening. Because really, this is on the back of lower fuel costs, lower electricity costs, gasoline prices, for example, down 18 years over year. 

And that's good for motorists, which takes the bite out of inflation for many of us. But the real pain here? Grocery prices continue to the upside: a nine per cent increase over this time last year that's virtually unchanged from April. They're not showing signs of coming down anytime soon, and you break that down further. It is cooking oils, for example, up close to 20 per cent cereals, Bakery Goods, things like that of 15.

So a mortgage interest rate costs up to 30 per cent yearly on those higher mortgage rates that people were paying over this time last year. This is good news because the rate is coming down in the right direction that Bank Canada wants. 

But on the other, there's still a contingent out there to think we'll see another rate hike from the bank account as soon as January or July 12th. We're already at 4.75. That's the overnight rate, so it could tick up again before this is over. And that's a global phenomenon at the same time.

So we were talking about the Cost of Living and Food, specifically here. So you're also looking at that long-awaited Federal report on food costs in Canada. What came out of that? Yeah, some interesting recommendations. This is from the Competition Bureau, and they're acknowledging that Lob Law, Sobies and Metro and the owners of those franchises have virtually all of the grocery options in the country.

 So they're saying some interesting things. A few points that Federal government, Municipal and territorial governments should support alternative players to enter the market. And because that's hard to do, they want the entry of international Grocers into the candy Market. It's a strong statement. They also want harmonized unit pricing. 

A loaf of bread cost should cost the same over here that it is over here. And also, the government should limit the property controls in the grocery industry to help new competitors into the market. So some pretty startling things when you start moving into those Capital markets to make way for smaller players. And the goal here is to increase competition.

Saying that's a Lobla Soviets Metro had a hundred billion dollars in sales just last year, 3.6 billion in profit, and they want to make sure that you know they're doing everything they can to have lower Canadian food prices.

No, I know you've been talking about this all morning, and you touched on it here. Do you have a prediction for the next Bank of Canada? 25 of the Market players believe we'll see another quarter-point rate hike, so it's still on the burner that we could see another one as soon as long. 

Because, of course, that's the first question that comes to mind. When you see the interests and inflation rather than homeowners, it's their first question.