Your living costs are the highest in six years.
And they will go higher.
Because of the Trump imposed tariffs on Canadian goods and Canada’s retaliatory tariffs.
That means goods coming from the U.S. will cost more.
And do not believe what retailers are saying the press that prices will not rise.
They did already.
On July 1 prices for items such as dishwashers, washing machines and dryers rose by 10 per cent.
So let’s look at what happened prior to the new tariffs that came into effect on July 1st
The cost of living index rose by 2.5 per cent in June.
This was the largest increase in six years.
The increase is due to higher energy prices, especially gasoline, fuel oil and other fuels. It followed a 2.2 per cent reading for May.
Other major reasons are – pricier airline tickets, restaurants and mortgage interest costs.
The June pace lifted inflation to its highest point since February 2012 when it was 2.6 per cent. It also moved the number farther away from the two per cent mid-point of the Bank of Canada’s target range.
The central bank, however, has been expecting inflation to rise.
Last week, the central bank predicted inflation to move as high as 2.5 per cent — due to temporary factors like higher gas prices — before it settles back down to two per cent in the second half of 2019.