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Greater Niagara Chamber of Commerce

Daily Update: August 15, 2023

Inflationary rate accelerates to 3.3% after 2.8 increase in June, Canadian home sales see little change from June to July, and more.

In this edition:

  • Inflationary rate accelerates to 3.3% after 2.8 increase in June
  • Canadian home sales see little change from June to July
  • Manufacturing sales fall 1.7%
  • Canadian Cybercrime and Fraud Trends Report notes drastic increase in attacks
  • New dedicated St. Catharines fund to mitigate budget impacts on taxpayers approved
  • Reading Recommendations: Finance & Economy

Inflationary rate accelerates to 3.3% after 2.8 increase in June

The Consumer Price Index (CPI) rose 3.3% year over year in July, following a 2.8% increase in June. Acceleration in headline consumer inflation was mainly attributable to a base-year effect in gasoline prices, as a large monthly decline in July 2022 (-9.2%) is no longer impacting the 12-month movement. Excluding gasoline, the CPI rose 4.1%, edging up from 4.0% in June.

The mortgage interest cost index (+30.6%) posted another record year-over-year gain and remained the largest contributor to headline inflation. The all-items excluding mortgage interest cost index rose 2.4% in July.

On a monthly basis, the CPI rose 0.6% in July, following a 0.1% gain in June, largely a result of higher monthly prices for travel tours, with July being a peak travel month. On a seasonally adjusted monthly basis, the CPI rose 0.5%.

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Canadian home sales see little change from June to July

Statistics released today by the Canadian Real Estate Association (CREA) show national home sales were only slightly changed on a month-over-month basis in July 2023. Home sales recorded over Canadian MLS® Systems posted a small 0.7% decline between June and July 2023. Activity has been showing signs of stabilizing since May.

While sales were up in July in more than half of all local markets, a decline in the Greater Toronto Area (GTA) tipped the national figure slightly negative. Sales were also down in the Fraser Valley, which together with the GTA off set gains in Montreal, Edmonton and Calgary.

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Manufacturing sales fall 1.7% on back of slowing petroleum/coal, chemical, and machinery subsectors

Manufacturing sales decreased 1.7% to $71.5 billion in June, on widespread declines over 14 of 21 subsectors, led by the petroleum and coal product (-8.3%), chemical (-6.5%), and machinery (-5.5%) subsectors. Sales of motor vehicles increased the most, rising 11.4% to $5.6 billion in June. On a quarterly basis, total sales fell 0.8% in the second quarter of 2023, mainly on lower sales in the petroleum and coal product (-8.1%) and primary metal (-8.9%) subsectors. Year over year, total sales decreased 1.4% in June.

Total sales in constant dollars declined 1.0% in June, indicating a lower volume of goods sold.

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Canadian Cybercrime and Fraud Trends Report notes drastic increase in bot and human initiated attacks

LexisNexis® Risk Solutions published its Canadian Cybercrime and Fraud Trends Report, which provides an overview on Canadian transactions and attacks detected by the LexisNexis® Digital Identity Network® between January-December 2022. Canadian transactions processed by the Digital Identity Network® totaled approximately 8 billion in 2022, a 32% increase year over year (YOY). Based on the report’s findings, Canada experienced a 30% increase in human initiated attacks and a 52% increase in bot attacks.

Canadian financial services organizations experienced one of the highest overall attack rates globally, second only to LATAM financial services organizations. The highest attack rates across Canadian financial services occurred at new account opening (5.2%) and payments (5.8%). Notably, the Canadian ecommerce industry experienced a significant 183% increase in bot attacks.

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New dedicated St. Catharines fund to mitigate budget impacts on taxpayers approved

To prepare for future challenges, the City of St. Catharines plans to enhance its budget process and will create a dedicated fund to mitigate the impact of the municipal budget on taxpayers.

The City will track and identify the staff positions that were budgeted for but were delayed in being filled or were unable to be filled, along with the total budgetary savings because of this ‘gapping’ and report these savings to the Budget Committee for inclusion into a special Tax Mitigation Fund for 2024, 2025 and 2026.

Also, staff have been directed to prepare the 2024-2026 multi-year budget with the current approved full-time complement.

Did you know?

Air Canada introduced the world’s first computerized reservation system, ReserVec, in 1962.

Focus on Finance & Economy

Hot inflation ‘blew the doors off’ in July, but core measures ‘good news’ for BoC

Canada’s annual inflation rate rose to 3.3 per cent in July from a year ago, according to Statistics Canada. While the headline increase brings the Consumer Price Index (CPI) further from the Bank of Canada’s target range, core inflationary measures suggest price pressures may continue to ease.

July’s rise in the CPI was up from a 2.8 per cent rise in June. StatCan said on Tuesday the faster pace was mainly due to the base-year effect on gasoline prices, which declined steeply in July 2022. Excluding gasoline, the CPI rose 4.1 per cent, up from 4.0 per cent in June.

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The shift from owning to renting goods is ushering in a new era of consumerism

Today’s consumer landscape is witnessing a pivotal shift away from traditional ownership towards an access-based model. Rather than outright owning goods and services, people prefer to simply have access to them.

Access-based consumption means engaging in transactions where ownership doesn’t change hands. Instead of owning physical copies of DVDs or CDs, for example, people subscribe to streaming services. Consumers are able to access a wide range of products without the burden that comes with traditional ownership.

This approach is closely associated with the sharing economy, which encourages collaborative consumption. This involves sharing, swapping and renting resources, eliminating the need for personal ownership of these goods.

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Through the Daily Updates, the GNCC aims to deliver important business news in a timely manner. We disseminate all news and information we feel will be important to businesses. Inclusion in the Daily Update is not an endorsement by the GNCC.

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