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Reuters
17 hours ago
- Business
- Reuters
Canada's annual inflation rate in June up slightly to 1.9%
OTTAWA, July 15 (Reuters) - Canada's annual inflation rate rose to 1.9% in June, meeting analysts' expectations, as increases in the price of automobiles, clothing and footwear pushed the index higher, data showed on Tuesday. The consumer price index was at 1.7% in the prior month. Statistics Canada said on a monthly basis the CPI increased 0.1%, matching analysts' forecasts. CPI has been under 2%, or the mid-point of the Bank of Canada's inflation target range, for three consecutive months. This is the last major economic indicator to be released before the Bank of Canada's rates decision later this month. The slight rise in prices across many segments, along with a strong jobs number last week, is likely to take away any incentive to cut interest rates, economists said. Money markets were betting on the odds for a rate cut at just over 10% after the data was released . The central bank will announce its monetary policy decision on July 30. "It's just the latest piece of evidence to keep the Bank of Canada on hold after 83,000 jobs (added in June) and no clarity on how fiscal policy and trade policy will evolve," said Derek Holt, vice president of Capital Market Economics at ScotiabankC. The Canadian dollar was trading stronger by 0.19% to 1.3677 against the U.S. dollar, or 73.12 U.S. cents. Yields on the government's two-year bonds were down 0.6 basis points to 2.761%. The rise in prices in June was primarily led by a 2.7% jump in durable goods such as automobiles and furniture, following a 2% rise in May on a year-on-year basis, StatsCan said. Passenger vehicle prices rose 4.1% on an annual basis in June following a 3.2% increase in May, the agency added. Inflation was further boosted by a rise in the price of clothing and footwear, which accelerated 2% annually in June after a modest 0.5% rise in May, due in part to uncertainty surrounding international trade, Statistics Canada said. U.S. consumer prices also picked up in June, likely marking the start of a long-anticipated tariff-induced increase in inflation. Canadian gasoline prices are expected to be depressed for the next 10 months after the government scrapped the consumer carbon levy on gasoline in April. On a year-over-year basis gasoline prices fell by 13.4% in June from 15.5% in May. Economists and the central bank have focused on the core measures of inflation, which excludes the impact of tax measures, to gauge price trends. One of the core measures of inflation, the CPI-median, or the centermost component of the CPI basket, edged up to 3.1% in June from 3% in the prior month. The other core measure CPI-trim, which excludes the most extreme price changes, was unchanged in June at 3% from May, StatsCan said. "The fact that core inflation is pretty much locked in at around 3% is a bit of an issue for Bank of Canada rate cut prospects," said Doug Porter, chief economist at BMO Capital Markets. Shelter prices, which account for up to 30% of the CPI basket weight and comprises mortgage and rent, rose by 2.9%, the first drop below 3% in more than four years.
Globe and Mail
17 hours ago
- Politics
- Globe and Mail
MEDIA NOTICE - Canada's Premiers to Meet in Huntsville July 21-23, 2025
OTTAWA, ON, July 15, 2025 /CNW/ - As Chair of the Council of the Federation, Ontario Premier Doug Ford will host the 2025 Summer Meeting of Canada's Premiers from July 21 to 23, at Deerhurst Resort in Huntsville.
Reuters
5 days ago
- Business
- Reuters
Canada's unemployment rate drops to 6.9%, economy adds 83,100 jobs
OTTAWA, July 11 (Reuters) - Canada's unemployment rate surprisingly dropped a tick to 6.9% in June as employment increased in wholesale and retail trade and health care and social assistance, data showed on Friday. The economy added 83,100 new jobs in June, the first net increase since January, Statistics Canada said. Most of this employment growth was in part-time work. Analysts polled by Reuters had estimated the unemployment rate to tick up to 7.1% from 7% in May, with no job additions. The jobs report usually has a standard error of around 32,000 between two consecutive months. This is the final jobs report before the Bank of Canada's monetary policy decision on July 30 and a better than expected unemployment and job addition numbers is likely to tilt the bank towards another hold in its policy rate. The June inflation data coming next week will be the final number which will help the central bank seal its decision. Money markets are betting that the odds of a rate cut this month are at just 30%, a slight change from Thursday after U.S. President Donald Trump threatened to impose 35% tariffs on all Canadian imports from Aug. 1, which will be over and above the already existing tariffs on various sectors. While the number of unemployed Canadians in June hardly changed from May, it was up 9% to 128,000 on a year-over-year basis and over one in five unemployed people had been searching for work for 27 weeks or more in June, an sharp increase from June 2024. Statistics Canada said the layoff rate in June did not show any major uptick and remained low at 0.5% relative to historical averages barring recessionary periods. Tariff exposed sectors such as transportation and manufacturing had been showing signs of strain for the three months through May. The employment in transportation dropped by 3,400 people in June while manufacturing posted a jump of 10,500, StatsCan said. The biggest increase in employment was a 33,600 jump seen in wholesale and retail trade. Healthcare and social assistance saw a jump of 16,700 people while agriculture sector shed 6,000 people in June. The participation rate, or the number of people employed and unemployed in the total population was at 65.4% in June, up from 65.3% in May. The average hourly wage of permanent employees - a gauge closely tracked by the BoC to ascertain inflationary trends - grew by 3.2% to C$37.22.
Edmonton Journal
05-06-2025
- Politics
- Edmonton Journal
In Quebec, opposition mounts against a pipeline project that doesn't exist
Article content OTTAWA — At Quebec's National Assembly and on Parliament Hill in Ottawa, pipelines have dominated the debates. The only issue? No projects involving the province are on the agenda. 'I think there is a fixation on pipelines on (Prime Minister Mark) Carney's part at the moment, not on the part of Quebecers,' said Bloc Québécois MP and former Greenpeace activist Patrick Bonin.
Yahoo
19-03-2025
- Business
- Yahoo
Energy CEOs to Canadian leaders: An urgent plan to strengthen economic sovereignty
Build Canada Now CEOs representing Canada's energy industry released a letter to Canadian federal political leaders outlining an urgent action plan to strengthen Canadian economic sovereignty, through our energy industry. The open letter calls for a rapid, dramatic regulatory restructuring to enable investment in critical oil and natural gas infrastructure across Canada. OTTAWA, Ontario, March 19, 2025 (GLOBE NEWSWIRE) -- This morning, an open letter from 14 CEOs representing the four largest pipeline companies and 10 largest oil and natural gas companies was delivered to Canada's political party leaders. This is in answer to inquiries on how Canada can respond to escalating global energy security challenges and the urgent need for pragmatic energy strategies. To read the full letter and view the signatories, please visit: Build Canada Now 'It's time for Canadians to claim our economic sovereignty. In recent months, each of us have been asked what needs to happen to ensure Canada has control over its economic destiny, and what we can do to make sure we have full access to global markets and trade. We are saying it's time to roll up our sleeves as a country, and build needed energy structure,' says Adam Waterous, Executive Chairman, Strathcona Resources Ltd. 'Canadians now recognize the need for us to grow our energy sector and build energy infrastructure, including new oil and natural gas pipelines, and Liquefied Natural Gas (LNG) export terminals. They want a country-wide push to champion our products and pipelines, and to unleash the potential of our natural resources. Everyone wants our country to continue to prosper and our export-focused economy to grow,' he adds. Canada has vast reserves of oil and natural gas, and credible forecasts predict they will remain amongst the world's largest sources of energy for decades to come. Canada can provide for its own domestic needs, while also exporting around the world. The country can be a leader in global energy security by being a provider of affordable, lower emission, democratically and responsibly produced energy. Canada can compete against any major global energy producer. 'Realizing Canada's opportunity will take collaboration between industry, government and Canadians. Today, the federal government does not have the right policies, or the regulatory framework to support oil and natural gas investment. Delays in permitting processes for critical infrastructure often results in billions in lost economic opportunities for Canadians. It's time for change. These are barriers we have imposed on ourselves that need to be removed, now,' says François Poirier, President and Chief Executive Officer, TC Energy. An action plan for Canadian leaders The letter outlines a clear plan with five calls for action. For the oil and natural gas sector to expand and for energy infrastructure to be built, Canada's federal political leaders need to: Simplify regulation. The federal government's Impact Assessment Act and West Coast tanker ban are impeding development and need to be overhauled and simplified. Regulatory processes need to be streamlined, and decisions need to withstand judicial challenges. Commit to firm deadlines for project approvals. The federal government needs to reduce regulatory timelines so that major projects are approved within 6 months of application. Grow production. The federal government's unlegislated cap on emissions must be eliminated to allow the sector to reach its full potential. Attract investment. The federal carbon levy on large emitters is not globally cost competitive and should be repealed to allow provincial governments to set more suitable carbon regulations. Incent Indigenous co-investment opportunities. The federal government needs to provide Indigenous loan guarantees at scale so industry may create infrastructure ownership opportunities to increase prosperity for communities and to ensure that Indigenous communities benefit from development. All CEO signatories of the letter are ready and willing to engage so that energy projects move forward promptly, and construction of critical infrastructure can begin for the benefit of Canada and all Canadians. -30- Media Inquiries:Media Relationsmedia@ 403-920-7859 or 800-608-7859 A photo accompanying this announcement is available at: PDF available:
