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Tariffs Ignite Inflation Surge as Fed Faces Tough Choices

  U.S. Inflation Accelerates in June, Validating Fed Concerns The U.S. Consumer Price Index (CPI) rose by 0.3% in June , marking the largest monthly increase since January and pushing the annual inflation rate to 2.7% , up from 2.4% in May. This uptick is widely seen as the beginning of a tariff-driven inflation wave, confirming long-standing concerns from Federal Reserve officials. Core CPI, which excludes volatile food and energy prices, climbed 0.2% month-over-month and 2.9% year-over-year , indicating that price pressures are broadening beyond energy costs. Economists attribute the rise to higher prices on imported goods such as electronics, furniture, and recreational items—sectors heavily impacted by recent tariffs. Federal Reserve Chair Jerome Powell had previously warned that the summer months would reveal whether tariffs imposed by the Trump administration would translate into sustained inflation. With new levies set to take effect on August 1 targeting imports from M...
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New CPP rules mean higher deductions and benefits for Canadians



Starting Monday, Canadians will see a change in their paycheques as the Canada Pension Plan (CPP) introduces a new earnings ceiling for higher-income earners.

The new ceiling, which applies to anyone earning more than $68,500 in 2024, is part of a broader pension revamp that began in 2019. The goal is to provide more financial support for Canadians after they retire, by increasing both the contributions and the benefits of the CPP.

Under the new rules, workers and employers will pay an additional four per cent on the amount they earn between $68,500 and $73,200. This means a maximum of $188 more in payroll deductions for 2024. Self-employed people will pay both portions, or eight per cent.

The trade-off is that Canadians will eventually receive higher payouts once they start collecting their pensions. The enhanced CPP is designed to replace one-third of a person’s eligible income, up from one-quarter under the old system.

The full effects of the CPP changes will take decades to materialize, so the youngest workers stand to gain the most. People retiring 40 years from now will see their income go up by more than 50 per cent compared to the current pension beneficiaries.

The CPP changes do not affect the eligibility criteria for retirement pension, post-retirement benefits, disability pension and survivor’s pension.


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