Canadian Capitalist

Report on Business is running a cover story on how inflation is starting to bite the bottom line of most ordinary Canadians. Here are some of the ways in which the cost of living is increasing:

1. Mortgages: Variable rate mortgages have gone up by 0.5% in just a few weeks. Fixed-rate mortgages have also started edging up.
2. Line of Credit: Many forecasters see the prime rate at 6% by the end of 2006.
3. Gasoline: 15% increase over the past year. Over the next year, who knows?
4. Home Heating: Rates have been contained so far but some predictions call for a 33% spike this winter.
5. Hydro: At least in Ontario, hydro may be very expensive next year.
6. Property Taxes: Some homeowners are facing soaring property taxes.

At a time when wage growth is anaemic and the savings rate is in negative territory, inflation is likely to hit many Canadian families hard.

Bookmark:   del.icio.us Digg StumbleUpon

Related Posts:

• Interest Rates Are Going Up
• Inflation: It’s Back and it’s Bad
• Canadian Inflation Report
• The Costs of Home Ownership
• Real Estate Returns