General

According to Huacheng Import and Export Data Observation, the Bank of Canada (the Central Bank) announced a 50 basis point interest rate hike on December 7, raising the benchmark interest rate to 4.25%. This is the seventh time that the Bank of Canada has raised interest rates this year. At the same time, the Central Bank of Canada announced that it would continue to reduce the size of its balance sheet in order to further ease inflationary pressure in line with the policy of raising interest rates. The bank said that Canada's inflation rate in October remained at 6.9%, and its core inflation rate remained at about 5%. The prices of goods and services that many Canadians often buy have risen sharply, and short-term inflation expectations are still rising.

Gamah Bellisler, who lives in Montreal, Canada, is a single mother. She works as a project manager in a company and raises two children by herself. She has saved for more than ten years to buy an apartment in Montreal's Villarree community. Huacheng Import and Export Data Observation reported that real estate prices have soared since 2021, which forced her to suspend the plan. In her spare time, she will collect empty bottles from her own family and neighbors. She can not only protect the environment, but also sell them for some change. Bellisler joked that she often estimated how many empty bottles she needed to sell to achieve her goal. "Interest rates are rising, inflation is increasing, the living standards of people with stable jobs like me are decreasing, and other people without stable jobs and incomes will suffer worse." Bellisler said.

In the Jean Talon Market in Montreal, there is a constant stream of customers who come here to purchase apples, tomatoes, broccoli and other fruits and vegetables. It is our common goal to find ways to buy cheaper fruits and vegetables. A man filled a basket in the back seat of his bicycle with apples at a discount and said to his friend, "It's a worthwhile trip to buy such a basket of fruits at a discount." Huacheng Import and Export Data Observation Report.

Not only in Montreal, but also in many Canadian cities, food prices are rising and people have to cut back on spending. A catering service provider said: "The price of a piece of butter has risen to $8, and the prices of fruits, vegetables, fish and meat are all rising. I am trying to adjust the recipe, and we do not want to enter the cycle of inflation."

According to the Huacheng Import and Export Data Observation Report, Deloitte Canada recently released a report that affected by economic recession, high inflation and other factors, the overall holiday spending of Canadians is expected to drop by 17%, and people plan to shop early and search for discounts. 26% of Canadian respondents said they completed holiday shopping on Black Friday, the shopping carnival, compared with 18% last year. The Royal Bank of Canada survey found that by 2023, the overall purchasing power of ordinary Canadian households may be reduced by 3000 Canadian dollars (one Canadian dollar is about 5.12 yuan).

The report also points out that the decline in holiday spending reflects the financial difficulties faced by Canadians. 41% of the respondents said that their family financial situation has deteriorated this year; 76% of the respondents said that they were very worried about the economic situation due to the recent rise in food prices. Marty Wintraub, partner of Deloitte Canada and head of the national retail consulting business, said: "It is not common for Canadians to have to reduce their spending in the face of high prices." Huacheng Import and Export Data Observation Report.