Tag Archive for: Loblaws

What goes up

What goes up!

We all know that old expression “What goes up must come down”! In this day and age does this apply to our current variable rate mortgages. Before the Bank of Canada stepped in early last year our prime rate sat at 2.45%, we are currently at 6.7% after having gone up 8 times in the past year.

Inflation is now at the lowest level in a year, coming in at 5.9% vs the high of 8.1% back in June of last year. While still not the 3% target, it is still much better than where we were. In fact the price of gas has come down quite a bit since this time last year. In-fact most things are coming back to earth with the exception for the price of food.

The stubborn continued rise in the price of food I … Read more

January 2023 Inflation Rate update

January 2023 Inflation report

The inflationary report for January 2023 was released by Statistics Canada yesterday and we appear to be doing better than we expected. The market consensus had predicted that inflation would drop to 6.1% from 6.3% in December 2022. Actually we dropped to 5.9% which was the lowest rate since last February. So while we saw decreases in transportaion & shelter it is actually stubbornly high for food prices which are still accelerating at the fastest pace since 1981, up 10.4%.

Since the weighting of shelter & transportation in relation to food is higher ( based on spending habits from 2002) is why our overall inflationary rate dropped. The market is estimating that the rate will decrease again in February to 5.2%. If this is the case it will turn out to be the lowest rate in a year. Thus proving … Read more