In this edition:
- 2022 inflation reached 40-year high
- Bank of Canada announces appointment of non-executive Deputy Governor
- St. Catharines city council approves 1.12% tax increase
- Welland Economic Development partners with Niagara Catholic DSB to promote trades
2022 inflation reached 40-year high
Statistics Canada’s annual inflation review showed an average annual inflationary rate of 6.8% in 2022, following gains of 3.4% in 2021 and of 0.7% in 2020. The increase in 2022 was a 40-year high, the largest increase since 1982 (+10.9%). Excluding energy, the annual average CPI rose 5.7% in 2022 compared with 2.4% in 2021.
The Consumer Price Index (CPI) rose 6.3% year over year in December, following a 6.8% increase in November.
Excluding food and energy, prices rose 5.3% on a yearly basis in December, following a gain of 5.4% in November.
The headline CPI grew at a slower pace largely due to slower growth in prices for gasoline. Additional deceleration came from homeowners’ replacement cost, fuel oil and other owned accommodation expenses, as well as from various durable goods. Slower price growth was offset by increases in mortgage interest cost, clothing and footwear and personal care supplies and equipment.
Consumers paid 13.1% less at the pump in December compared with November, the largest monthly decline since April 2020. This reflected lower prices for crude oil amid concerns of a slowing global economy, as well as reduced demand following an increase in COVID-19 cases in China.
Bank of Canada announces appointment of non-executive Deputy Governor
The Board of Directors of the Bank of Canada today announced the appointment of Nicolas Vincent as the Bank’s new external, non-executive Deputy Governor for a term of two years, effective March 13, 2023. Mr. Vincent’s appointment, which is the result of an open external search process, fills the vacancy created by the departure of Timothy Lane in September 2022.
St. Catharines city council approves 1.12% tax increase
St. Catharines residents will pay 1.12 per cent more in 2023 than 2022 on the city portion of their tax bills, despite council adding 24 new full-time employees, enhancing service levels and tackling other budget pressures, thanks to the uploading of city transit services to Niagara Region.
City council adopted the 2023 operating budget Monday night, which sees $13.5 million in transit service obligations removed from the city’s portion of the property tax bill due to the new amalgamated system run by the Region.
“The 2023 operating budget presents a one-time opportunity for the city to regain some of its financial sustainability,” said financial management services director Kristine Douglas, referring to the impacts of COVID-19, which included revenue hits, deferred projects, reduced contributions to capital and increased reliance on reserves.
Click here to read more.
Welland Economic Development partners with Niagara Catholic DSB to promote trades
Welland’s Economic Development Department is pleased to partner with the Niagara Catholic District School Board to promote apprenticeship pathways and re-education to the public about the value of skilled tradespeople.
Two events are scheduled in the first half of 2023 – January 19 and May 17, from 6:30 to 8:30 p.m. – and are open to students and their families. Stemming from discussions with industry leaders in the city, Welland’s Economic Development team is well-versed in the needs of industries operating in Welland.
“We know there will be a shortage of skilled trades workers,” said Lina DeChellis, manager of economic development. “Partnering with the Niagara Catholic and offering a line into what industries are looking for will hopefully shine a light on this very needed, lucrative career path.”
Click here to read more (PDF link).
Focus on Finance & Economy
Deloitte calls for a Canadian recession in 2023
Deloitte is forecasting an economic contraction in Canada in the months ahead.
The firm’s 2023 Economic Outlook report released on Tuesday cited the Bank of Canada’s aggressive stance on monetary policy and an expected recession south of the border as the driving forces behind the cool down.
“Our forecast predicts the steady diversion of household income toward interest payments and a U.S. recession will push down Canadian economic growth for three consecutive quarters, resulting in an overall contraction of 0.9 per cent,” the report said.
While the report assumes the BoC’s rate-hiking cycle has come to end, it stated the full effects are yet to be reflected.
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.
