Northern Ont. businesses worry over Canada’s current inflation rate situation
Many northern Ontario businesses and charities told CTV News they are worried when it comes to Canada’s soaring inflation rate.
It was up 8.1 per cent in June compared to a year ago, marking the country’s largest yearly change since January 1983.
The inflation rate in May was 7.7 per cent.
At the North Bay Food Bank, shelves need to be stocked on a regular basis to serve the city's vulnerable population.
"When things cost more, it costs us to buy more," said Debbie Marson, the food bank’s executive director.
"Where we have budgeted $15,000 to cover the inventory to fill the hampers, we're going to have to budget $20,000."
From January to June this year, the food bank served almost 3,000 people and more than half of the food bank’s clients are on Ontario Disability Support Program (OPSD).
"Last week alone during a client session, we had four new adults come through the door," Marson said.
"We're seeing clients we haven't seen in a long, long time because their situation has changed when it comes to money in their pocket."
Canadians also continued to see higher prices at the grocery store, with the cost of food up 8.8 per cent compared with June last year, although that rate is unchanged from May.
Inflation is forcing restaurants and businesses to make changes to how they operate. At Cecil’s Brewhouse and Kitchen, owner John Lechlitner is trying to remain optimistic.
"We would typically and historically do one price adjustment annually,” he said. “Unfortunately, we'll be making, I believe, three price adjustments this year."
As the economy reopened further, energy and food prices continued to rise and some products were hard to get a hold of.
"The crippling factor is the supply chain," Lechlitner said.
"You can't always get the same product that you're ordering."
It's not just food and gas on the rise, but also other supplies. The cost of household furnishings and equipment is continuing to go up, with June recording a 5.6 per cent jump.
"Sometimes it's hard to get the lumber. We have to wait for the lumber,” said Alain Thibault, the owner of Thibault & Son Lumber Mill, a building material supplier.
He said around 70 per cent of lumber that comes into the shop is from the U.S.
"Sometimes it's pretty hard to get a job because we'll lose a job as the price is too high," Thibault said.
"What we have to do is adjust the price."
The North Bay and District Chamber of Commerce is encouraging the public to shop local as much as possible to help the businesses that are facing this inflation crisis.
"Because they are spending, we want people to shop local and support local,” said Donna Backer, the chamber’s director of development, policy and communication.
"That's going to help keep money in the local economy versus it going out-of-bounds."
Economists are predicting the inflation rate may have peaked in June, but it's a waiting game to see when the rate will level out.
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