Inflation in Canada slowed significantly in April, falling to 1.7%, down from the March 2.3%, driven by the end of the consumer carbon tax, which mostly influenced the price at the gas pumps. That is where Canadians found the most relief, with gas prices dropping 18.1% year-over-year in April. Global oil prices also fell during this period, driven by declining demand and higher production of OPEC countries, influencing gas pricing. Excluding energy from the CPI Index, inflation would have been at 2.9%, which would have been an increase from the March 2.5%. So, while we saw overall inflation decrease, there are still concerning indicators that lead us to believe that we still have some challenges ahead. For example, grocery prices rose 3.8% last month up from the 3.2% we experienced in April. This was driven primarily by increases in beef (up 16.2%) and coffee/tea (up 13.4%). This is the third month in a row, that grocery store inflation has outpaced overall CPI. The April inflation data arrives two weeks in advance of the Bank Canada making their next interest rate decision on June 4th. The BOC held its policy rate in April, citing a need for more time to understand how tariffs would impact the economy. While that information may remain murky, this latest inflation news will certainly provide them with further information to digest. A big decision awaits- we believe that there is enough evidence for the BOC to lower rates again next month, with inflation easing, the economy remaining stagnant and a weakening of the labour market. But as we have often experienced this year, information seems to change rapidly, even daily. So, it would not surprise us if another vital piece of information emerges between now and June 4th. Stay tuned…
Moody’s recently downgraded the US’s credit rating from AAA to AA. We have an excellent article that highlights the importance of this.
Staying the course in volatile markets, often does not mean do nothing. It means reviewing and adjusting where necessary, based on market conditions and the environment of change. We have an article that helps readers to understand this.
Do you have enough life, disability, or critical illness insurance? Experts say that young Canadians are underinsured. We have an insightful article to help people choose the correct coverage.
With the recent rift with the US, many Canadians are choosing to travel less in the US and discover more of their own country. We have a great article that highlights five new destinations within Canada for you to enjoy.
The Michelin Restaurant Guide has announced its first ever list in the province of Quebec. This article highlights the best of the best restaurants the province has to offer. Check out the list in the article.
As discussed above, there may be a possibility of another postal strike. This could delay things like client statements, government cheques etc.… Fortunately, we have an alternative for you! If you have not yet signed up for the client portal and would like to know how, please reach out to Deb ([email protected] or 226-647-4595) and she can help get you set up. The client portal is a great tool, and we have received lots of positive feedback regarding its ease of setup and its efficiency of use. The client portal can assist you in staying connected and managing your portfolio at any time. Please reach out if you need help getting set up for the client portal. Go to https://iaprivatewealth.ca/access to register.
Have a wonderful week everyone!
Canada Post workers are set to go back on strike just a short time after they were forced to go back to work in December. The attached article includes information on what could be affected and the details of what is driving this latest rift in negotiations.
