February’s inflation rate set a record until this week when Statistics Canada announced that March’s inflation numbers were the highest in 31 years.
Inflation shot up to 6.7 per cent in March.
Last month when February’s inflation figure perched at 5.7 per cent, the projection was that the March inflation rate might hover around 6.1 per cent. But March sprang beyond the mark as if the onset of spring-inspired it to spring higher.
Statistics Canada reported a rise in all eight categories of the economy captured by its data: Food; Shelter; Household operations, furnishings and equipment; Clothing and footwear; Transportation; Health and personal care; Recreation, education and reading, and Alcoholic beverages, tobacco products and recreational cannabis. None was spared.
“Inflationary pressure remained widespread in March, as prices rose across all eight major components,” stated the report of Statistics Canada.
“Prices increased against the backdrop of sustained price pressure in Canadian housing markets, substantial supply constraints and geopolitical conflict, which has affected energy, commodity, and agriculture markets,” it added.
However, the report noted that there was a silver lining in the sky with employment continuing to strengthen in March, as the unemployment rate fell to a record low. It said that in March, average hourly wages for employees rose 3.4 per cent on a year-over-year basis.
Gasoline was the worst hit with the war in Ukraine being the direct cause. The report noted that in March, gasoline prices rose 11.8 per cent month over month, following a 6.9 per cent increase in February. Global oil prices rose sharply in March because of supply uncertainty following Russia’s invasion of Ukraine. Higher crude oil prices pushed prices at the pump higher. Year over year, consumers paid 39.8 per cent more for gasoline in March.
Month over month, prices for fuel oil and other fuels rose 19.9 per cent, the second-largest increase on record after February 2000. On a year-over-year basis, prices for fuel oil and other fuels rose 61.0 per cent in March.
Similarly, the Consumer Spending Tracker released by the Royal Bank of Canada on Thursday said that pent-up demand pushed spending higher in April, with Canadian household spending climbing 30 per cent above pre-COVID levels.
The report noted that goods sales remained strong, driven by increases in clothing, furniture and grocery purchases. It added that spending on travel and hospitality continues to surge back as the economic impact of the pandemic subsides.
However, in spite of rise in food prices, that did not curb the appetite of Canadian consumers for dining out, as both the number of transactions and amount spent on restaurants have gone up.
Measuring the aggregate spending across economic sectors, the RBC tracker revealed that on a weekly basis, households now spend 35.63 per cent more than in 2019 when COVID-19 began and destabilized the economy, and on a monthly basis, households now spend 30.72 per cent more.
On Thursday, oil prices rose to its highest level in three days, caused by a series of challenges to supply. West Texas Intermediate closed Thursday above US$103 a barrel. The Biden administration unveiled a fresh arms package for Ukraine and also banned the entry of Russian ships to U.S. ports in a week Russia claimed it had taken control of the strategic port city of Mariupol in Ukraine with its eyes set on Donbas.
On Thursday too, Prime Minister Justin Trudeau was not specific on when new initiatives will be introduced as part of a Home Buyers’ Bill of Rights to help more first-time buyers enter Canada’s rising real estate market. Speaking to reporters in Ottawa, Trudeau listed key steps in the federal budget to curb the rise in costs of houses and supply shortages. However, he did not state exactly when those measures will take effect.
On Wednesday, Netflix lamented a drop in the number of households using the streaming service by 200,000 in the first three months of the year. Stiff competition from rivals like Disney and Prime Video (Amazon) and its recent increase in prices in some countries after its withdrawal from Russia were fingered as the causes.
There is no gainsaying the effect of the war in Ukraine on global economies at a time countries are emerging from COVID-19 measures. As you take your investment decisions in the different sectors at a time like this, make sure you review it well with the advice of investment experts.
Let’s now see what attracted the interest of our readers most this week in our Top 5 Stories. Our readers showed interest in diverse sectors spanning technology, mining, finance, and agriculture. Let’s now review our Top 5 Stories of the week.
Datametrex AI (DM) introduces telemedicine services via its Medi-Call mobile telehealth application
The Medi-Call app will be available in English and French initially in the province of BC.
Marshall Gunter, CEO of Datametrex sat down with Dave Jackson to discuss the news.
Datametrex AI Limited opened trading this week at $0.16, went up and down but still returned to the same price as at 3:15 p.m. ET on Friday.
Power Metals (PWM) receives an exploration permit from the Ministry of Northern Development, Mines, Natural Resources and Forestry
The exploration permit is for its Case Lake Property in northeastern Ontario.
Johnathan More, Chairman and Director of Power Metals sat down with Shoran Devi to discuss the news.
As at 3:20 p.m. ET on Friday, Power Metals Corp was trading at $0.33, with a gain of $0.04 or 13.79 per cent in the week.
Hank Payments (HANK) provides financial and corporate updates
Highlights include a record 89.2 per cent growth in gross margins.
The company’s platform is also in the process of expanding to accommodate gig workers, banks and lenders, debt settlement, debt management and credit counselling.
CEO Michael Hilmer sat down with Shoran Devi to discuss the updates.
Hank Payments Corp rose to $0.14 as at 10:43 a.m. EDT on Friday, gaining $0.02 or 16.67 per cent in the week.
Nextech AR Solutions (NTAR) launches its ARitize 3D BigCommerce App
The app provides BigCommerce merchants with the software needed to sell effectively online, with one-click integration for 3D model making.
CEO Evan Gappelberg joined Shoran Devi to discuss the news.
Nextech Ar Solutions Corp was trading at $0.88 at 3:37 p.m. ET on Friday, with a drop of $0.06 or 6.38 per cent in the week.
Affinor Growers (AFI) ships second order of cultivar strawberries to Four Seasons Farm
The company has also shipped its first order of strawberries to the IGA on Robson Street in Vancouver.
Affinor CEO Nick Brusatore sat down with Shoran Devi to discuss the news.
Affinor Growers Inc was trading at $0.050, with a dip of $0.01 or 16.67 per cent, as of 11:51 a.m. ET on Friday.
As the world marks the 2022 edition of Earth Day this Friday, April 22, let us remember to take care of the earth to reduce the adverse effects of climate change. While you enjoy your weekend, please remember to join us next Friday for another edition of Top 5 Stories.
