'You have to make some choices': Monctonians react to inflation hike
It's getting more and more difficult for Vicky Gagne to deal with inflation and the rising cost of gas.
Gagne and her partner are driving less and sometimes only using one car because fuel prices are cutting into their budget.
“It's hard. It's really, really hard,” said Gagne, while filling up at a Moncton station Tuesday morning. “Sometimes we have to pick between food or gas between me and my boyfriend.”
Canada's inflation rate has jumped from 3.3 per cent in July to four per cent in August according to a new report released by Statistic Canada on Tuesday.
The rise in inflation is largely being driven by gas prices which are up on both a yearly and monthly basis.
Bill Didychuk said he used to burn around a tank of gas every week and a half.
“Now I'm going through two tanks a week. It's just getting too expensive to drive. To go to a restaurant or anything else like that,” said Didychuk.
Tuesday’s report did state that grocery prices are still rising, but more slowly.
Grocery prices were up 6.9 per cent from a year ago compared to 8.5 per cent in August.
Prices however fell by 0.4 per cent between July and last month.
Some customers at a Moncton produce shop worry there's only so many dollars to go around right now.
“It means less going out to eat or things like that,” said Nick Smith. “You have to make some choices.”
Smith is worried what rising inflation will mean in the future for his kids.
“We're in a situation where we're fortunate enough where we own a home and things like that,” said Smith. “But I'm looking at down the road. What will the affordability be like for them in terms of rents and buying a house?”
Moncton realtor Natalie Davison said with inflation going up again now may actually be a good time for potential buyers to make a move.
“If you're in the market to buy a house, and you have a rate locked in, you really want to be cognizant of the fact that later in the year we might see interest rates go up again,” said Davison.
Davison said sometimes when a hike in interest rates is looming buyers will wait until rates come back down.
“That’s not my recommendation because when rates eventually start coming back down housing prices are going to go up. Buyers are going to rush to the market and it’s going to be way more competitive,” said Davison.
David MacDonald, a senior economist for the Centre of Policy Alternatives, said Tuesday’s report was certainly higher than what he expected.
“This is certainly bad news in terms of setting us up for interest rate hikes in the fall and winter. There was a broad expectation of 3.8 (per cent) and we're now at 4 per cent broad inflation,” said MacDonald.
The Bank of Canada is scheduled to make its next decision on interest rates on October 25.
With files from the Canadian Press
For the latest New Brunswick news, visit our dedicated provincial page.
CTVNews.ca Top Stories
![](https://www.ctvnews.ca/polopoly_fs/1.6979388.1722030190!/httpImage/image.jpg_gen/derivatives/landscape_800/image.jpg)
Celine Dion delivers stirring comeback performance at Paris Olympics opening ceremony
Against the rainy Paris night sky, Celine Dion staged the comeback of her career with a powerful performance from the Eiffel Tower to open the Olympic Games.
Jasper wildfire: 'Several weeks' before residents can return, premier says
Premier Danielle Smith said Friday afternoon in Hinton while weather conditions are cooler, the Jasper fire is still considered out of control and that Jasper residents can expect to be away from their homes 'for several weeks.'
Missing 3-year-old boy found dead in creek in Mississauga, Ont.: police
A three-year-old boy has been found dead a day after he went missing in a park in Mississauga, Ont., Peel police say.
Irish museum pulls Sinead O'Connor waxwork after just one day due to backlash
An Irish museum will withdraw a waxwork of singer-songwriter Sinéad O'Connor just one day after installing it, following a backlash from her family and the public, it told CNN in a statement on Friday.
Winnipeg senior's account overdrawn for $146,000 water bill
A Winnipeg senior is getting soaked with a six-figure water bill.
Turpel-Lafond won't sue CBC over Cree heritage report that took 'heavy toll': lawyer
The lawyer for a former judge whose claims to be Cree were questioned in a CBC investigation says his client is not considering legal action against the broadcaster after the Law Society of British Columbia this week backed her claims of Indigenous heritage.
Driver charged after flashing high beams at approaching police
Orillia OPP arrested and charged a driver with impaired driving after flashing their high beams.
Major Canadian bank experiences direct deposit outage on payday
Scotiabank says it has fixed a technical issue that impacted direct deposits on Friday morning.
FBI says Trump was indeed struck by bullet during assassination attempt
Nearly two weeks after Donald Trump’s near assassination, the FBI confirmed Friday that it was indeed a bullet that struck the former president’s ear, moving to clear up conflicting accounts about what caused the former U.S. president’s injuries after a gunman opened fire at a Pennsylvania rally.