In this edition:
- Inflation hits 39-year high as CPI tops 8%
- Inflation rate will remain ‘painfully high’ all year
- Niagara’s credit rating upgraded, Region receives budget award
- Fort Erie announces short-term rental changes
- Port Dalhousie piers transferred to City of St. Catharines
- Questions raised about value of random COVID-19 tests for travellers
- St. Catharines approves CIP for 37-storey downtown tower
Inflation hits 39-year high as CPI tops 8%; accommodation prices up 68%, gasoline 55%, raw materials 32%
The rate of consumer inflation continued to rise, reaching 8.1% year over year in June, following a 7.7% gain in May. The increase was the largest yearly change since January 1983. The acceleration in June was mainly due to higher prices for gasoline. On a year-over-year basis, consumers paid 54.6% more for gasoline in June following a 48.0% increase in May, contributing the most to headline consumer inflation. However, price increases remained broad-based with seven of eight major components rising by 3% or more.
Excluding gasoline, the CPI rose 6.5% year over year in June, following a 6.3% increase in May.
The easing of public health measures and the increase in tourism which followed has led to higher demand for travel-related services. Travellers across the country faced higher prices for accommodation (+49.7%) compared with June 2021, with prices rising the most for consumers in Ontario (+68.0%).
Prices of raw materials purchased by manufacturers operating in Canada, as measured by the Raw Materials Price Index (RMPI), edged down 0.1% on a monthly basis in June 2022 and increased 32.4% year over year.
Inflation rate will remain ‘painfully high’ all year, Bank of Canada governor anticipates
As Canadians continue to feel the squeeze from an increased cost of living, Bank of Canada Governor Tiff Macklem says Canada’s inflation rate is set to remain “painfully high” for the rest of the year.
On Wednesday, Statistics Canada reported the country’s annual inflation rate rose to 8.1 per cent in June, up from 7.7 per cent in May, marking the largest yearly change since January 1983.
In an exclusive interview with CTV News’ Evan Solomon, Macklem said the inflation rate is “unfortunately… probably going to start with a seven for the rest of the year.”
“It is going to be painfully high,” Macklem said Wednesday.
Niagara’s credit rating upgraded, Region receives budget award
Standard & Poor’s (S&P) has upgraded Niagara Region’s credit rating to an “AA+” standing.
For the past several years, S&P has reaffirmed the Region’s credit rating as “AA” with a stable outlook. The improved “AA+” rating is the second-highest rating on Standard & Poor’s credit rating scale.
In its report released earlier this month, S&P stated the Region’s improved standing reflects its ability to maintain financial resiliency over time, including during a significant stress scenario like the COVID-19 pandemic. In its assessment, S&P noted Niagara Region and other municipalities did well to manage service levels and expenditures, which helped mitigate the financial stress of the pandemic.
Niagara Region has also received the Government Finance Officers Association’s (GFOA) Distinguished Budget Presentation Award for its budget for the fiscal year beginning January 1, 2022. This award was presented to the Financial Management and Planning Division.
Fort Erie announces short-term rental changes
As of July 18, 2022, Fort Erie Council made additional changes to the Short-Term Rental program. Operators will be required to maintain a register of renters and overnight occupants and follow new advertising guidelines. The amended Short-Term Rental By-law also details the consequences of operating without a licence and potential licence revocation for those that contravene the By-law.
Click here to read more (PDF link).
Port Dalhousie piers transferred to City of St. Catharines
Ownership of the Port Dalhousie Piers and harbour lands including Lakeside Park will be transferred to the City by the Honourable Joyce Murray, Minister of Fisheries, Oceans, and the Canadian Coast Guard, following Council support Monday.
The City has leased the Port Dalhousie Piers and harbour lands including Lakeside Park from the Minister as represented by the Department of Fisheries and Oceans (DFO) since 1992. The City sub-leases portions of the lands to various sub-tenants, which will continue following the transfer, including the St. Catharines Fish and Game Club, the Dalhousie Yacht Club and the Port Dalhousie Pier Marina.
Questions raised about value of random COVID-19 tests for travellers
Infectious disease experts are at odds over how valuable it is to randomly test travellers arriving in Canada for COVID-19, as the federal government relaunched its mandatory testing program. The government put a pause on random testing at airports in June as long customs delays caused chaos at Canada’s airports, but relaunched the program on Tuesday at four major airports: Toronto, Calgary, Vancouver and Montreal.
Dr. Theresa Tam, the chief public health officer, has called the tests an “early warning system” for new variants of COVID-19 as they enter Canada.
The government has issued several contracts worth hundreds of millions of dollars to companies across the country to administer the program.
Infectious disease physician Dr. Zain Chagla says there are more efficient ways to watch for variants that don’t inconvenience travellers and don’t contribute to airport delays, such as testing the wastewater at the airport.
St. Catharines approves CIP for 37-storey downtown tower
City councillors opted to approve a community improvement plan application to allow a development to proceed at 7 St. Paul St. W. and 7 McGuire St.
St. Catharines planning and building services director Tami Kitay said the proposed mixed-use building will include 478 residential units as well as three retail units, and one large office, “bringing an estimated 860 new residents and 27 jobs to our downtown priority neighbourhood.”
Without the community improvement plan (CIP), developer Aaron Waxman told councillors the $200-million project would not happen.
Reading Recommendations
Canada inflation quickens to 8.1%, keeping up rate-hike pressure
BNN Bloomberg
Consumer price inflation accelerated in June to the highest level since January 1983, maintaining pressure on the Bank of Canada to continue delivering aggressive interest rate hikes.
The consumer price index rose 8.1 per cent from a year earlier, Statistics Canada data showed Wednesday. The inflation gauge increased 0.7 per cent from a month earlier.
Both numbers were lower than expected, with economists anticipating gains of about 8.4 per cent annually and 0.9 per cent monthly, according to the median estimate in a Bloomberg survey.
Canada is foolish to snub international graduate students and scholars
The Conversation
In January 2017, Donald Trump, then president of the United States, barred entry to the U.S. of people from predominantly Muslim countries.
In response, Prime Minister Justin Trudeau lauded Canada as an open and welcoming nation.
But some criticized Trudeau’s #WelcomeToCanada tweet, calling it virtue signalling and saying it offered false hope and perpetuated a disingenuous portrayal of the Canadian immigration practices.
Despite Trudeau’s words of welcome and the general public’s perception of Canada as a friendly and welcoming place, many people trying to come to our country find themselves facing distinctly unwelcoming realities.
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.
