canada inflation

Prices for these basic items are going up even more in Canada but for a new reason

While the last few months have had most Canadians overstretched financially, prices for many more basic household necessities are about to get even higher, but not just because of inflation rates (which are finally starting to slow their upward trajectory, but are still more than double the long-term average).

Experts are now warning that the falling value of the Canadian dollar is leading to increased costs for companies buying from the U.S. — costs that will soon be pushed back onto consumers, and that will end up contributing to inflation even more.

Items purchased via Canadian distributers, such as wholesalers and retailers of fruits, vegetables and other groceries; alcohol from small producers; certain types of equipment and more, are feeling the pressure of buying in U.S. dollars, with the Canadian dollar now down to 72.77 cents USD as of this week, the Star reports.

By comparison, it was over 80 cents in March, before inflation rates hit their peak this summer and caused groceries, hotels, and just about everything to spike in price, some to highs not seen in decades.

Things like car insurance and rent are also way up year-over-year, and the vast majorty of residents say they can't keep up and are severely modifying their spending to get by.

Part of this will now likely include limiting trips south of the border.

It does not help that wages are not at all keeping pace, while additional factors continue to contribute to runaway price hikes: supermarkets adding to their profit margins and a new rule permitting credit card processing fees to be passed onto customers among them.

Lead photo by

A Great Capture


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