Sylvain Charlebois: What Does the Latest Interest Rate Hike Mean for Your Wallet?
Commentary
The Bank of Canada has once again increased its benchmark interest rate, this time by .25 basis points to five percent, amid growing apprehension from a number of financial experts regarding its potential impact on consumers. And their concerns are not unfounded.
Let us examine the evidence.
Undoubtedly, food and housing constitute the fundamental necessities of life. Pertinent data reveals that the cost of housing exerts a considerable influence on our grocery expenditures. Notably, despite prevailing inflation, the latest quarterly results from Empire/Sobeys/IGA indicate a $16 million decline in food sales compared to the corresponding quarter of the previous year. That’s right, $16 million. Similarly, Loblaw/Provigo experienced a mere 3.1 percent increase in food sales over the past year, despite inflation consistently exceeding nine percent for the preceding 12 months. Metro witnessed a modest 5.8 percent rise in food sales at their stores during the last quarter….