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.
CTVNews.ca Top Stories
Canadian gov't proposes new foreign influence registry as part of wide-spanning new bill
Prime Minister Justin Trudeau's government is proposing a suite of new measures and law changes aimed at countering foreign interference in Canada, amid extensive scrutiny over past meddling attempts and an ever-evolving threat landscape.
Boeing Starliner capsule's first crewed test flight postponed
The long-awaited first crewed test flight of Boeing's new Starliner space capsule was called off for at least 24 hours over a technical issue that launch teams were unable to resolve in time for the planned Monday night lift-off.
Teacher charged in historical sexual assault of Calgary teenage girl
Calgary police have charged a teacher with the alleged sexual assault of a teenage girl more than 20 years ago.
Winnipeg man admits to killing four women, argues he's not criminally responsible
Defence lawyers of Jeremy Skibicki have admitted in court the accused killed four Indigenous women, but argues he is not criminally responsible for the deaths by way of mental disorder – this latest development has triggered a judge-alone trial rather than a jury trial.
Man banned from owning animals after fatal Calgary dog attack
The owner of three Calgary dogs that got loose and mauled a woman to death in 2022 has been ordered to pay a $15,000 fine within one year and banned from owning any animal for 15 years.
East-end Ottawa family dealing with massive rat infestation
Residents in Ottawa’s Elmridge Gardens complex are dealing with a rat infestation that just won’t go away. Now, after doing everything they can to try to fix the issue, they are pleading with the city to step in and help.
Mediterranean staple may lower your risk of death from dementia, study finds
A daily spoonful of olive oil could lower your risk of dying from dementia, according to a new study by Harvard scientists.
An El Nino-less summer is coming. Here's what that could mean for Canada
As Canadians brace themselves for summer temperatures, forecasters say a weakening El Nino cycle doesn’t mean relief from the heat.
Newfoundland and Labrador latest province to tighten rules on Airbnbs
Newfoundland and Labrador is the latest jurisdiction to bring in stricter rules for short-term rentals, with a coming set of regulations that will force operators to register with the provincial government.