Canada’s annual inflation rate dropping to 2.8 percent in June has been hailed as a “milestone moment” by Deputy Prime Minister and Finance Minister Chrystia Freeland. This decrease from 3.4 percent in May brings the inflation rate within the Bank of Canada’s target range of one to three percent for the first time since March 2021.
Freeland expressed relief on behalf of Canadians during a teleconference with reporters, acknowledging the economic hardships faced since the onset of the COVID-19 pandemic and subsequent recession. She described the drop in inflation as a positive development, emphasizing that it is a significant moment for the country.
The current inflation rate is the lowest in over two years, contrasting with the high of 8.1 percent recorded in June 2022. Furthermore, Canada’s inflation rate is now lower than that of all other G7 countries, where rates range from 8.7 percent in the UK to 3.2 percent in Japan.
While Freeland celebrated this achievement, she acknowledged the ongoing struggles faced by Canadians, particularly concerning the rising costs of groceries. NDP MP and finance critic Daniel Blaikie expressed skepticism, stating that while the inflation numbers show some progress, prices are unlikely to decrease significantly in the near future, especially for food. Conservative MP and finance critic Jasraj Singh Hallan criticized the government for being out of touch with Canadians’ challenges, highlighting the burden of increased costs caused by inflation.
Freeland addressed concerns about high food prices, mentioning the recently implemented one-time grocery rebate for lower-income Canadians. She recognized that the rebate may not fully compensate for the impact of inflation but emphasized its importance in providing some relief, particularly for families. Freeland called upon Canadian businesses and food retailers to adopt responsible pricing practices to support Canadians and the overall economy.
While the drop in the inflation rate signifies progress, the Canadian government remains aware of the ongoing challenges faced by individuals and families. Efforts to address the impact of inflation, especially concerning food prices, continue to be a priority in supporting Canadians during these challenging times.