Canada's Inflation Hotter than Expected: Food Prices UP on Weak Dollar

#canadianinflation #canadiandollar #canadianeconomy

Canada’s inflation rate came in hotter than expected in October, rising 2% year-over-year. The data comes amid concerns that the weak Canadian dollar is putting upward pressure on imports, sending food prices rising.

Consumer price index:

Canada’s inflation rate ticks back up to two per cent in October, StatCan says:

USD/CAD trades with positive bias above 1.4000, looks to Canadian CPI for fresh impetus:

Canada's inflation could rise, but won't derail progress:

'It's all caught up to us now': Low Canadian dollar hits locally owned grocery store:

Policy interest rate:

Why the Dollar Keeps Getting Stronger:

Inflation rate ticks up, thwarting hopes of bigger Bank of Canada cut:

Inflation rate drops to 1.6% in September:

‘Trump trade’ sees loonie fall to four-year low against U.S. dollar:

U.S. Dollar Index (DXY):

The Canadian dollar is weak, and it will likely stay that way for months, expert says:

U.S. 2 Year Treasury Note:

Canada 2 Year Government Bond:

Strong US data feeds doubts about Fed December rate cut:

Posthaste: Canada's record economic gap with the United States is about to get wider:

Dollar retains strength against peers on Trump trade:

Goldman Sees Dollar ‘Stronger for Longer’ in a New Tariff Regime:

Mark Mitchell – Mortgage Broker London Ontario
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Commentary on this Channel should not be considered financial advice.

[Wink_Dinkerson]

"So, as long as you leave the country and take your phone with you, you're all set."

Came for the analysis, stayed for the humour.

[Casey-qmnd]

Despite consumer weakness, the Bank of Canada is not in control, inflation is. Central banks are abandoning their inflation targets in order to give relief to gov and banks. The trade off is longer term higher borrowing costs for the general public. This is because bond markets will demand higher yields to account for hotter inflation.

Companies that sell essential services and goods will outperform other sectors as they have the pricing power to pass the increased costs on. Companies that sell consumer discretionary goods will be impacted the hardest. I also expect with higher food prices, more people will opt to eat out less, which will be bad for that portion of the economy.

Thanks always for the great insights and analysis.

[Rob]

Yup but we saved the housing market …. Yahhhh …. Wait what?

[jwg]

Hurray! We've upgraded from the Canadian peso to the Canadian Rand!

[djdynieldaniel]

Hotter than expected.
Expected 1.9%
Mesured 2.0%.
They already trying to rip us off.

[lawrencehalpin]

Thank you Mr. Mitchell. Canada and Canadians debt levels are a real problem in the balancing act the bank of Canada has to do. The 80's and 90's are coming back with a vengeance. 8 or 9 percent gst on the horizon.

[sherdonforbes]

The Great Canadian Peso is coming to a city near you. Southern Ontario potatoes prices: 2012 10poundbag of potatoes 0.99 2019 10poundbag of potatoes 1.99 2024 10poundbag of potatoes 5.99. The government and bank of Canada have decided that high home prices and reckless government spending are more than prosperity of Canadians, prosperity of future generations and our national currency. The Great Canadian Peso will drop to 0.65 -0.68 by Christmas and drop to .065 to 0.55 by next year around election in October. We can see it get a lot lower. Debtors are winners and savers are loosers. Well I hope previous generations, mortgages debtors and government are happy you want more inflation and high home prices you got it you win. If you are young and want a stable family and life save up as much as possible and leave Canada permanently. This country is finished. All for high home prices. Thank you Mr. Mitchell for your time and service it's greatly appreciated

[Stormshfter]

Every single data point says that cutting rates will make no difference for near future prosperity.
We just can't sustain this kind of divergence for an extended period of time. The trickle down effect to households is already being felt.
Our seasonal local produce will be completely consumed by Christmas and inflation will accelerate the day we flip the calender to 2025.
I will return from Mexico in March to a very different Canada.
The govt knows the general public is kept uninformed by the mainstream media and will continue to pull Tiff Maclins cords with further cuts.
HAPPY NEW YEAR!!

[alsmart]

The Bank of Canada needs to STOP cutting interest rates immediately and publicly declare that they stand ready to support the Loonie by increasing interest rates if required. Any further weakness in the Canadian Dollar will be devastating for the standard of living of the bottom 99% of Canadians.

[DiabeticDawg]

I’ve just become desensitized to price of groceries 😂 oh well. Here we go again.

[bigsid]

Way to go Ms Freeland, your work here is almost done! Time for another false Victory Lap !

[SlayR]

Strap in Canadians, inflation is about to get really really bad in 2025 if the boc makes any more rate cuts. They should not have made the last two, and now we are all going to oay for it, instead of just those that over leveraged themselves.

[bedbac]

And we didn't see Trump's tax yet !!

[vzeq]

Countries fearing tariffs pressure are buying USD to soften the blow.

[namkebanyanklariti]

What I don't understand is why is Global News writing about what the chief economist at TD Bank is saying that stimulus cheques from the feds next spring could men lower or no further interest rate cuts? Why is an economist and a global News online writer trying to influence the BOC in their future decisions to not give poor Canadian home owners relief on their sky high mortgage coming up for renewals? That is wickedness.

[Yannick]

Winter is the reason why vegetable is more expenssive lately.

[marketsareopenmao]

The BoC should not be cutting rates. It is likely they cut once more and stop this absurdity of cutting into inflation. It's not my fault someone levered up and now needs the BoC to bail them out

[baseline]

Increase to 2% I heard due to Alberta inflation, gas tax inflation.

[mykeprior]

CAD/USD is absolutely going to rebound, it's gotta have a breather to the DTL, then just when people get comfy buying amazon presents, it'll knock the DTL and down we go again. Especially on a BoC cut. Im getting worried SFHs will actually go up on increased assumptions of US buyers taking advantage.

[shanmarg]

Inflated prices have remained the same as 2022, none of the supermarkets have reduced prices so it does not make any difference to the consumer