{"id":230811,"date":"2024-10-28T12:13:24","date_gmt":"2024-10-28T16:13:24","guid":{"rendered":"https:\/\/www.2026-pfc.reviewyoursite.ca\/blog\/?p=230811"},"modified":"2025-03-07T10:26:26","modified_gmt":"2025-03-07T15:26:26","slug":"inflation-in-canada-and-what-it-means-for-newcomers","status":"publish","type":"post","link":"https:\/\/2026-pfc.reviewyoursite.ca\/blog\/managing-money\/inflation-in-canada-and-what-it-means-for-newcomers","title":{"rendered":"Inflation in Canada and What it Means for Newcomers"},"content":{"rendered":"\n
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For newcomers and international students arriving in Canada, the current rate of inflation affects how much you pay for housing, groceries, transportation, and other expenses. Staying informed about inflation changes can help you budget and manage your finances. Stay up-to-date with recent changes so you can manage the cost of living in Canada.<\/p>\n\n\n\n

The most recent Statistics Canada data (June 2024) shows the annual inflation rate fell from 2.9 percent in May to 2.7 percent in June. This rate drop is welcome news for immigrants who have recently arrived or will soon arrive.<\/p>\n\n\n\n

Lower gasoline prices were the driving force behind the rate drop.<\/p>\n\n\n\n

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What is contributing to the current rate of inflation?<\/p>\n\n\n\n

Durable goods (cars, home appliances, consumer electronics, furniture, sports gear, toys, etc.) fell by 1.8 percent, which also helped lower the rate.<\/p>\n\n\n\n

More good news for newcomers is that cell phone services were down 12.8 percent in June compared with 19.4 percent in May. Canada has some of the highest mobile phone rates in the world.<\/p>\n\n\n\n

Clothing and footwear prices also edged lower in June. Service prices rose 4.8 percent annually in June, compared with a 4.6 increase in May.<\/p>\n\n\n\n

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Some costs and services that led to the June inflation drop:<\/h4>\n\n\n\n
COST OR SERVICE<\/th>CHANGE<\/th><\/tr><\/thead>
Durable Goods (furniture, appliances)<\/td>Down 1.8% year over year<\/td><\/tr>
Used vehicles<\/td>Down -4.5% amid improved inventory levels compared with a year ago<\/td><\/tr>
Travel tours<\/td>Down 11.1 compared to a year ago<\/td><\/tr>
Recreation\/Leisure<\/td>Down 0.5% in June after a 0.4% gain in May<\/td><\/tr>
Cell phone services<\/td>Down 12.8% in June compared to May 2024<\/td><\/tr>
Gas prices<\/td>Rose just 0.4% in June compared to 5.6% in May<\/td><\/tr>
Price for fresh fruit<\/td>Down -5.2% in June compared with May (-2.8%)<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Newcomers can monitor inflation in Canada to help budget for costs.<\/em><\/strong><\/p>\n\n\n\n

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Housing inflation is a concern for immigrants<\/p>\n\n\n\n

While rent growth has slowed in recent months in Canada\u2019s largest cities, Toronto<\/a> and Vancouver<\/a>, some popular rental markets, such as Alberta, continue to have rental price growth. Rent prices in Canada rose 9 percent in June compared to June 2023.<\/p>\n\n\n\n

So, will the drop be enough to convince the Bank of Canada (BOC) to cut its key overnight lending rate gain?<\/p>\n\n\n\n

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Will an interest rate cut follow the inflation report?<\/h3>\n\n\n\n

The BOC lowered interest rates from 5 percent to 4.75 percent in June 2024. That cut was the first in four years, and the first time the rate fell below five percent since July 2023.<\/p>\n\n\n\n

The Bank will meet on July 24 to discuss whether current economic conditions warrant further cuts.<\/p>\n\n\n\n

Derek Holt<\/a>, Vice President and Head of Capital Markets Economics for Scotiabank believes that \u201cthe BOC is still likely to cut\u201d in July, which would be good news for immigrants.<\/p>\n\n\n\n