From the late 1960s to the early 1980s, more unionised workforces from Europe to Aotearoa New Zealand fought hard to keep wages abreast with inflation. But it’s unlikely that could happen now.
Initiatives like the federal government’s new grocery rebate are only a small step towards ending food insecurity in Canada. A broader guaranteed basic income is long overdue.
The Fed’s campaign of rate hikes is showing more signs of having the intended effect of slowing the economy – but that may be bad news for those who lose their jobs or have a harder time finding one.
Peter Martin, Crawford School of Public Policy, Australian National University
More than one million borrowers are set to come off ultra-low fixed mortgage rates this year and next, meaning the full effect of the ten rate rises to date is yet to be felt.
Raising rates to fight inflation involves a time lag so current efforts to bring down prices won’t start having an impact until the next election is approaching.
Geranda Notten, L’Université d’Ottawa/University of Ottawa
Canada’s official poverty measure only focuses on income and ignores other important factors, meaning there are millions of Canadians living in poverty that are ignored by the measure.
The Fed raised rates by a quarter-point – less aggressive than had been expected before the current banking crisis, but signaling inflation is still its focus.
The latest consumer prices report shows cost of living is still rising far above the Fed’s target. But don’t expect monetary policymakers to aggressively hike rates.