In this edition:
Inflation rate sees highest increase since 1983
Deputy Bank of Canada Governor to retire
Niagara Community Observatory delivers Unhoused in Niagara report
Inflation rate sees highest increase since 1983
Canadians continued to feel the impact of rising prices in May as consumer inflation rose 7.7% year over year. This was the largest yearly increase since January 1983 and up from a 6.8% gain in April.
Excluding gasoline, the CPI rose 6.3% year over year in May, after a 5.8% increase in April. Price pressures continued to be broad-based, pinching the pocketbooks of Canadians and in some cases affecting their ability to meet day-to-day expenses.
The acceleration in May was largely due to higher prices for gasoline, which rose 12.0% compared with April 2022 (-0.7%). Higher prices for services, such as hotels and restaurants, also contributed to the increase. Food prices and shelter costs remained elevated in May as price growth was unchanged on a year-over-year basis.
Deputy Governor Timothy Lane to retire from Bank of Canada
The Bank of Canada announced today that Deputy Governor Timothy Lane will retire on September 16, 2022.
Mr. Lane joined the Bank in August 2008 as an Advisor to the Governor, after a distinguished 20-year career at the International Monetary Fund. He was appointed Deputy Governor in February 2009. During his tenure as a member of the Bank’s Governing Council, he has overseen analysis of the Canadian economy, the Bank’s work on financial markets, and the Bank’s analysis of international economic developments, including serving as the Bank’s G7 and G20 Deputy. Since 2018, he has overseen the Bank’s work on banking and payments and its currency research. He has also led the Bank’s ongoing work on financial technology, including a potential central bank digital currency.
Niagara Community Observatory delivers Unhoused in Niagara report
The NCO, in partnership with the YWCA Niagara Region, listened to women in Niagara who shared their stories of homelessness during three focus groups held this spring. The NCO’s SSHRC-funded research project aims to highlight their voices to policy makers and provide the context and empirical evidence to support their experiences.
At an event held at Brock University’s Pond Inlet today, the NCO released a fact sheet, Unhoused in Niagara, which gives a snapshot of their findings.
Grimsby developing plan to reduce potential cannabis odour
The presentation was led by SGL partner Susanne MacDonald, who suggested some amendments to the town’s draft official plan, and zoning bylaw, in an attempt to control cannabis growing and associated odours.
Reading Recommendations
High inflation ‘is keeping us up at night,’ says Bank of Canada senior deputy governor
Financial Post
The Bank of Canada’s senior deputy governor said inflation is keeping the central bankers “up at night” and did not rule out a three-quarter point hike after data revealed CPI has hit a near 40-year high.
Carolyn Rogers reacted to the 7.7 per cent gain in the inflation rate hours after Statistics Canada released the data on Wednesday, calling it an “unwelcome number,” but not “an entirely unexpected number” at a Globe and Mail event.
Canadian consumer prices increased in May at rates not seen since January 1983, beating economists’ forecasts and turning up the pressure on the central bank to follow the U.S. Federal Reserve with a supersized 75-basis-point hike.
‘Just stop buying lattes’: The origins of a millennial housing myth
The Hustle
Consider the 21st century’s most ubiquitous piece of financial advice: “Can’t afford a house? Just stop buying lattes.”
Every millennial has heard some kind of variation of this myth. It’s peppered all over Twitter, dispensed on personal finance blogs, and uttered from the mouths of pundits on national television. Sometimes, “latte” is exchanged for a different millennial trope, like avocado toast.
The idea that fewer lattes could solve millennials’ financial woes has been around for more than 20 years and can be traced to one man: a financial adviser and author named David Bach.
“Are you latte-ing away your future?” Bach asked in a 1999 book. “Everyone makes enough money to become rich. What keeps us living paycheck to paycheck is that we spend more than we make on stuff we don’t need.”
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