ECONOMY_COST_OF_LIVING · SECTION
Prices, inflation, interest rates, taxes, benefits, energy costs, household expenses, and economic changes directly affecting residents.
The Competition Bureau of Canada has finalized a legally binding consent agreement with Empire Co. Ltd., the parent company of Sobeys and other grocery banners, to address anti-competitive property controls in the Canadian grocery industry.
The shutdown of Pickering Nuclear Generating Station’s Unit 5 marks the beginning of a $26.8-billion refurbishment project that will take all four operational units offline by September 30. While industrial groups warn of skyrocketing electricity prices due to increased reliance on gas-fired generation, the Independent Electricity System Operator forecasts sufficient reserve capacity.
U.S. President Donald Trump has expressed support for banning diesel exports amid record domestic fuel prices driven by supply shortages from conflicts in the Middle East and Ukraine.
Hotel rates in Halifax, Nova Scotia, have risen by 20 to 40 percent over the past two years, driven by increased inbound travel from Europe and dynamic pricing during major events. Experts recommend early booking and considering accommodations outside the city center.
Average asking rents in Canada have declined for 23 consecutive months, with August recording the steepest drop since March 2026. Analysis shows that cities most exposed to U.S. tariffs are experiencing rent decreases nearly four times faster than those least affected, a trend linked to economic uncertainty following collapsed trade negotiations.
Canadian Finance Minister François-Philippe Champagne introduced Bill C-38 to extend the federal fuel excise tax suspension until January 31, 2027. The move aims to provide $2.9 billion in additional relief as global instability and Middle East conflicts keep fuel prices elevated.
Bank of Canada Governor Tiff Macklem stated that persistent U.S. trade tariffs could reduce fourth-quarter economic growth to below 1 per cent, while Middle East conflicts threaten to keep inflation near the central bank's upper target range.
Statistics Canada reports that housing affordability declined in 2024, with 23.2% of households spending over 30% of their income on shelter costs. Renters and homeowners with mortgages faced the most significant financial strain.
With home heating fuel prices in Nova Scotia rising approximately 40 per cent compared to last year, residents are increasingly seeking alternatives to oil and electric heat. Industry leaders report a significant spike in inquiries for propane conversions, while political figures highlight the impact of energy poverty and recent cuts to assistance programs.
President Donald Trump described higher gas prices as a "very inexpensive price to pay" for the war with Iran, a statement that clashes with polling data showing significant voter dissatisfaction. With the national average reaching $4.48 per gallon, economic hardship is becoming a central issue ahead of the November midterm elections.
On September 20, 2026, the People's Bank of China authorized the publication of new Loan Prime Rates, setting the 1-year LPR at 3.0% and the over-5-year LPR at 3.5%.
Prime Minister Mark Carney proposed a strategic alliance with the EU in Strasbourg, coinciding with the first Canada Investment Summit in Toronto. Meanwhile, the U.S. Federal Reserve raised interest rates for the first time since 2023, and Canadian investors sold a record $31 billion in U.S. stocks in July.
The U.S. Federal Reserve raised its benchmark interest rate by 25 basis points on September 16, 2026, marking the first increase since 2023. Despite the hike and hawkish signals from Chair Kevin Warsh, gold prices surged due to geopolitical tensions and strong institutional buying.
Following the collapse of US-Canada trade talks in August 2025, Canada imposed retaliatory tariffs on approximately $28 billion worth of US goods. While these measures have significantly increased costs for American manufacturers, polling suggests that Republican voters remain largely loyal to President Trump ahead of the November midterms.
European governments are grappling with record-high fuel and gas prices driven by Middle East tensions, leading to varied national responses and political pressure ahead of elections in eight member states.
The Bank of Japan increased its target interest rate to 1.25%, the highest level since 1995, to combat inflation driven by the war in Iran and rising energy costs. Governor Kazuo Ueda signaled a shift toward preventing inflation from overshooting the 2% target, though two board members dissented.
Following the U.S. Federal Reserve's recent rate hike, market odds for the Bank of Canada's next decision have narrowed to a near coin flip between holding rates steady or raising them, driven by high energy prices linked to the war in Iran.
A new report from the Parliamentary Budget Officer reveals that the cost of the Canada Child Benefit rose by $4.2 billion between 2022-23 and 2024-25, reaching $29.2 billion. The increase was primarily due to inflation adjustments and stagnant household incomes rather than immigration trends.
A new commentary by Danny Parys warns that Ottawa’s focus on attracting $1 trillion in investment may prioritize quantity over quality, citing a surge in foreign acquisitions of existing businesses rather than new capacity building.
The Bank of Canada kept its key policy rate steady at 2.25% on September 2, marking the seventh consecutive hold. Deliberations revealed concerns that renewed trade tensions with the U.S., triggered by new tariffs, could dampen business and consumer confidence, despite a resilient domestic economy.
Prime Minister Mark Carney announced a new tax policy allowing businesses to immediately expense eligible capital investments acquired on or after September 15, aiming to address Canada's declining labour productivity relative to the U.S.
Prime Minister Mark Carney hosted a reception at the Royal Ontario Museum ahead of Canada's first Investment Summit, aiming to secure $1 trillion in infrastructure and resource investments from global asset managers.
A sharp rise in global oil prices, driven by geopolitical conflicts involving Iran and the Houthis, has generated significant economic windfalls for Canada. These revenues are estimated to add $16 billion to $32 billion annually to Canadian GDP, potentially offsetting losses from U.S. tariffs imposed by President Donald Trump.
Diesel prices in Canada have reached a new high of $2.62 per litre, driven by geopolitical conflicts and supply constraints. Experts warn that these elevated fuel costs may lead to increased grocery prices for Canadians.
U.S. President Donald Trump has intensified the trade conflict with Canada by introducing product bans, additional duties, and restrictions on Canadian goods in federal contracts. Experts warn that while diversifying away from U.S. markets is essential, it cannot happen overnight.
Iran-backed Houthi rebels have captured the port city of Mocha and Perim Island in Yemen, escalating tensions in the Bab el-Mandeb Strait. The advance has driven Brent crude prices above $105 a barrel, forced Saudi Arabia to shut down its East-West oil pipeline, and displaced tens of thousands amid warnings from UN officials of a new dangerous phase in the conflict.
New Canadian tariffs on $28 billion of U.S. goods, effective Tuesday, impose levies up to 50% on key construction materials. Industry leaders warn this will exacerbate already high building costs and cause project delays.
Major Canadian financial institutions have announced multi-billion dollar commitments to domestic sectors ahead of the first Canada Investment Summit in Toronto, organized by Prime Minister Mark Carney.
A Globe and Mail commentary highlights how geopolitical conflicts have driven up energy prices, creating unfavorable conditions for the Republican party in the upcoming U.S. midterm elections.
Bank of Montreal announced a commitment to deploy up to $70 billion in new capital over the next decade into key sectors such as energy, mining, AI, and defence. This move aligns with broader efforts by major Canadian financial institutions and pension funds to support economic resilience ahead of the inaugural Canada Investment Summit in Toronto.
