Home buyers might be catching a break sooner rather than later after Canada’s inflation rate hit a three-year post-pandemic low in April, prompting speculation the Bank of Canada may soon be cutting interest rates.Led by falling food prices, April’s headline consumer price index (CPI) dropped to 2.7% from 2.9% the month before according to Statistics Canada numbers. That’s the lowest since April, 2021 after the country began coming out of the pandemic lockdowns. It’s also slightly below the Bank of Canada’s 3% forecast and closer to its 2% target..The numbers would have been closer to 2.5% after factoring out gasoline prices which rose 6.1% due to the carbon tax increase on April 1.Economists said that means the bank could begin cutting interest rates starting at its next meeting on June 5.The speculation is significant, because interest rates are a key factor in terms of issues such as housing affordability.“Today's data should have provided the all clear on the inflation front that the Bank of Canada needed to start cutting interest rates in June," CIBC economist Andrew Grantham wrote in a research note Tuesday..“Since then we have received two more months of data pointing to tame underlying inflation, for a total of four in a row, and because of that we continue to forecast a first rate cut at the next meeting in June.”Added BMO chief economist Douglas Porter: “We believe that the door is open for a BoC rate cut. But it remains a close call, and when the Bank does eventually move, it will be gradual with a highly patient Fed acting as a limiter on how far and how fast Canadian rates can fall."According to the data, meat prices were up 1.8%, dairy products up 1.2%, fresh fruit prices fell 4.4% while bakery products saw prices remain flat (zero change) compared to last year. Clothing and footwear prices fell about 2.6%..Manitoba continues to have the lowest inflation in the nation at 0.4% followed by Saskatchewan at 1%. Alberta was second highest at 3%, behind 3.1% in Nova Scotia and tied with Quebec. British Columbia clocked in at 2.9%.Alberta also led the way in rents increases at more than 16%..This is what the Western Standard is up againstThe Trudeau government is funding lies and propaganda by directly subsidizing the mainstream media. They do this to entrench the powerful Eastern, woke and corrupt interests that dominate the political, social and economic institutions in Canada. Federal authorities are constantly trying to censor us and stop us from publishing the stories that they don’t want you to read. Ottawa may weaponize our taxes and police against us, but we’ve got a powerful ally on our side.You. Free men, and free women. We need you to stand with us and become a member of the Western Standard. Here’s what you will get for your membership:Unlimited access to all articles from the Western Standard, Alberta Report, West Coast Standard, and Saskatchewan Standard, with no paywall. Our daily newsletter delivered to your inbox. .Access to exclusive Member-only WS events.Keep the West’s leading independent media voice strong and free.If you can, please support us with a monthly or annual membership. It takes just a moment to set up, and you will be making a big impact on keeping one the last independent media outlets in Canada free from Ottawa’s corrupting influence.
Home buyers might be catching a break sooner rather than later after Canada’s inflation rate hit a three-year post-pandemic low in April, prompting speculation the Bank of Canada may soon be cutting interest rates.Led by falling food prices, April’s headline consumer price index (CPI) dropped to 2.7% from 2.9% the month before according to Statistics Canada numbers. That’s the lowest since April, 2021 after the country began coming out of the pandemic lockdowns. It’s also slightly below the Bank of Canada’s 3% forecast and closer to its 2% target..The numbers would have been closer to 2.5% after factoring out gasoline prices which rose 6.1% due to the carbon tax increase on April 1.Economists said that means the bank could begin cutting interest rates starting at its next meeting on June 5.The speculation is significant, because interest rates are a key factor in terms of issues such as housing affordability.“Today's data should have provided the all clear on the inflation front that the Bank of Canada needed to start cutting interest rates in June," CIBC economist Andrew Grantham wrote in a research note Tuesday..“Since then we have received two more months of data pointing to tame underlying inflation, for a total of four in a row, and because of that we continue to forecast a first rate cut at the next meeting in June.”Added BMO chief economist Douglas Porter: “We believe that the door is open for a BoC rate cut. But it remains a close call, and when the Bank does eventually move, it will be gradual with a highly patient Fed acting as a limiter on how far and how fast Canadian rates can fall."According to the data, meat prices were up 1.8%, dairy products up 1.2%, fresh fruit prices fell 4.4% while bakery products saw prices remain flat (zero change) compared to last year. Clothing and footwear prices fell about 2.6%..Manitoba continues to have the lowest inflation in the nation at 0.4% followed by Saskatchewan at 1%. Alberta was second highest at 3%, behind 3.1% in Nova Scotia and tied with Quebec. British Columbia clocked in at 2.9%.Alberta also led the way in rents increases at more than 16%..This is what the Western Standard is up againstThe Trudeau government is funding lies and propaganda by directly subsidizing the mainstream media. They do this to entrench the powerful Eastern, woke and corrupt interests that dominate the political, social and economic institutions in Canada. Federal authorities are constantly trying to censor us and stop us from publishing the stories that they don’t want you to read. Ottawa may weaponize our taxes and police against us, but we’ve got a powerful ally on our side.You. Free men, and free women. We need you to stand with us and become a member of the Western Standard. Here’s what you will get for your membership:Unlimited access to all articles from the Western Standard, Alberta Report, West Coast Standard, and Saskatchewan Standard, with no paywall. Our daily newsletter delivered to your inbox. .Access to exclusive Member-only WS events.Keep the West’s leading independent media voice strong and free.If you can, please support us with a monthly or annual membership. It takes just a moment to set up, and you will be making a big impact on keeping one the last independent media outlets in Canada free from Ottawa’s corrupting influence.
