Consumers expect inflation to continue to rise but remain optimistic that rates will even out to more reasonable levels in the short term.
According to a survey by the Bank of Canada, Canadian consumers are not afraid to spend more money in the post-pandemic economy but remain cautious in their buying habits due to the rise of the Delta variant of Covid-19.
This is after inflation rose again to 4.4 per cent in September, up from 4.1 per cent in August and 3.7 per cent in July. Driven by higher food and gas prices and soaring housing costs, this marks the highest rates of inflation the country has seen in 18 years, according to data from Statistics Canada.
“It suggests there is still momentum at the margin in terms of inflationary pressures that can’t be just dismissed on base effects and other factors. So it’s still a sustained overshoot,” Derek Holt, vice president of capital markets economics at Scotiabank, said in an interview with Reuters.
The Bank of Canada will release its policy interest rate decision next week, which will surely guide Canadian businesses and consumers alike as the country emerges from the economic struggles of the past year.
Canadian stock indices remain on their upward trend with the S&P/TSX up 101.20 points today and the TSX Venture Exchange up 2.49 points.
Companies in the forefront of today’s market news include CN’s announcement of its search for a new CEO, HEXO’s appointment of a new President and CEO, and Purpose Investment’s filing of “the world’s first actively managed crypto ETFs.”
Companies announcing private placements this week include Ascendant, a Toronto-based mining company looking to raise 2 million dollars, and Silk Road Energy, an Alberta energy company.