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Canada's Inflation Just Hit a 3-Year High—Here's What That Actually Means for Your Money

May's Consumer Price Index report reveals inflation is accelerating again, driven by global oil shocks and rising food costs. We break down the impact on mortgages, savings, and your household budget. Last week, Canada's inflation story took a sharp turn. The May Consumer Price Index report showed inflation climbing to its highest level in three years—a wake-up call for households already struggling with rising costs and a signal that the Bank of Canada's long hold on interest rates may not ease anytime soon. If you've been hoping for relief at the grocery store or relief on your mortgage renewal, this news probably stings. But understanding what's driving inflation—and what it means for your financial decisions—is critical right now. What Pushed Inflation Up This Time? The spike wasn't random. Inflation jumped primarily due to energy and food prices—two categories that hit everyday Canadian wallets hard. Energy prices surged because of geopolitical tensions in ...
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Population growth outpaces job creation in Canada

 


Canada’s labour market is facing a challenge as the number of people looking for work is growing faster than the number of jobs available. According to Statistics Canada, employment increased by 25,000 in November, but the unemployment rate rose to 5.8 per cent from 5.7 per cent in October. This is because the population aged 15 and over grew by 870,000, or 2.7 per cent, since the beginning of the year, while the net job gain was only 430,000.

The Bank of Canada has been raising interest rates to curb inflation, but this has also slowed down the economy and the demand for labour. Some economists expect the central bank to start cutting rates in the second quarter of next year to stimulate growth and stabilize the labour market.

The job gains in November were concentrated in the private sector, full-time work, manufacturing and construction. However, some industries, such as wholesale and retail trade, finance, insurance and real estate, saw job losses. Younger workers (15 to 24) also faced higher unemployment than other age groups.

Average hourly wages rose 4.8 per cent year over year in November, matching the increase in October. The Bank of Canada is monitoring wage growth for signs of inflationary pressure. Total hours worked across the economy fell 0.7 per cent in November, indicating a weak performance of gross domestic product that month.


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