Canada Report: Inflation eases a bit in Canada, but another interest-rate hike expected

Inflation has leveled off but remains high enough for economists to expect another percentage-point increase in interest rates in September.

Statistics Canada said the national inflation rate fell to 7.6% and that was the first time in a year it has dropped month over month.

Prices continue to increase along with interest fees and housing showing higher loan rates. Inflation marked an almost 4-year high at 8.1% in June, driven largely by higher gasoline prices.

There has been a turnaround with gas prices, with drivers paying 9.2% less than earlier in the summer, the first drop since April 2020.

Prices were 12.2% lower in Ontario as the provincial government provided a gas and fuel tax cut July 1.

Helping to fuel the lower price was less demand and lifestyle changes as people are finding other ways to get around.

The average national price for gas is still high, selling at $1.70 a liter or $6.46 for a U.S. gallon in Canadian funds.

There are still double-digit gains for groceries and higher interest rates have cooled a seller’s market for real estate with sales in Greater Toronto and Vancouver down 40%.

Bell Media launches review after Lisa LaFlamme firing

Bell Media has launched “an internal workplace review” over mounting criticism of its dismissal of Lisa LaFlamme from her role as chief anchor at its CTV National News division.

The parent company said it “regrets” how the 3-year news anchor’s firing was handled.

There were also reports that upper management weren’t pleased with her decision to dye her hair a stark gray color.

LaFlamme, 58, said she was “blindsided” by the decision to part ways with her in what Bell Media said was a “business decision.”

The abrupt firing has raised questions about whether sexism and ageism played a role in the shakeup, and Bell said it will review allegations of discrimination.

She is succeeded by Omar Sachedina, 39, on Canada’s most-watched news program.

In brief

• Ontario has come up with a plan to help ease the strain on long-term care for seniors by boosting private clinic surgeries and moving elderly patients away from hospitals and even out of their hometowns for care. The government’s goal is to cope with hospital staff shortages, temporary emergency room closings and surgical backlogs. It hopes to help stabilize the health-care system and the new measures won’t cost anything for the patient.

Facts and figures

• The Canadian dollar is lower at 77 U.S. cents while the U.S. dollar returns $1.30 in Canadian funds, before exchange fees.

• The Bank of Canada’ key interest rate is steady at 2.5% while the prime lending rate at commercial banks is 4.7%.

• Canadian stock markets are mixed, with the Toronto index up at 20,114 points while the TSX Venture index is down at 650 points.

• The average price for gas in Canada is lower at $1.67 a liter or $6.35 for a U.S. gallon in Canadian funds.

• Lotto Max: (Aug. 16) 1, 2, 9, 21, 32,33 and 43; bonus 36. (Aug. 12) 4, 10, 28, 36, 40, 44 and 47; bonus 19.

• Lotto 6/49: (Aug. 17) 6, 7, 13, 30, 31 and 43; bonus 20. (Aug. 13) 5, 8, 13, 35, 37 and 40; bonus 3.

Regional briefs

A veteran British Columbia Liberal provincial politician has been removed from caucus after questioning climate change science. John Rustad had suggested in social media posts that he doubts climate change science and urged people to “celebrate CO2.” The politician for Nechako Lakes district west of Prince George, suggested that people had been “hoodwinked” by climate change science and they should be glad CO2 is being emitted into the atmosphere.

Weather watchers in Newfoundland say climate change is bringing less winter snow and rain and resulting in more forest fires in south coast communities. Out west, British Columbia is facing a tough summer with 295 active wildfires burning across the province. Emergency Management BC and the BC Ministry of Forests said devastating fires have now burned 1,200 square miles. Most of the fires were caused by lightning strikes.

This article originally appeared on The Ledger: Another percentage-point rate increase expected despite slowing inflation