Zimbabwe introduces gold coin to help bolster collapsing currency

Reserve Bank of Zimbabwe Governor John Mangudya holds a sample of a gold coin at the launch in Harare on July, 25.Tsvangirayi Mukwazhi/The Associated Press Faced with a collapsing currency and the world’s worst inflation rate, the Zimbabwe government has introduced an unconventional new weapon: a 22-carat gold coin with a value of more than … Read more

Soaring inflation in Ukraine deepens economic toll of Russia’s invasion

A clerk sells fruit in Bessarabska Square in central Kyiv. The market closed when the war started on Feb. 24, but reopened in April.Anton Skyba/The Globe and Mail The war in Ukraine has driven up prices in Canada and around the world. But spare a thought for people in Ukraine, where inflation is closing in … Read more

Canada’s economy is slowing quickly on bite from inflation, rising rates

The Canadian economy posted robust growth in the second quarter, but there are mounting signs of a slowdown as consumers grapple with sky-high inflation and rising interest rates. Real gross domestic product stalled in May, which was better than the initial estimate of a 0.2-per-cent drop, Statistics Canada said on Friday. The economy eked out … Read more

Opinion: Should businesses raise wages as inflation soars?

André Pratte is a principal at Navigator and executive chairman of the Canadian Center for the Purpose of the Corporation The inflation rate in Canada reached 8.1 per cent in June, a level not seen since January 1983. Those higher prices are putting increasing pressure on households, whose financial situations are growing tighter. In that … Read more

Inflation highs, housing lows and Rogers apologies: The business and investing stories you need to know about this week

A person shops for produce at the Granville Island Market in Vancouver on July 20, 2022. Canada’s inflation rate was up 8.1 per cent in June compared with a year ago, the largest yearly change since January, 1983.DARRYL DYCK/The Canadian Press Getting caught up on a week that got away? Here’s your weekly digest of … Read more

Lessons on inflation and rates from the 21.25% mortgages and 19.5% Canada Savings Bonds of 1981

In 1981, the safest investment imaginable paid 19.5 per cent. Now discontinued, Canada Savings Bonds had a run of decades as a trusty way to save money safely. But CSBs were never better than in ’81, a year when out-of-control inflation hit 12.5 per cent. Inflation’s running at 8.1 per cent today in Canada and … Read more

Blame America: Why Canada’s steep inflation isn’t entirely our fault

Shoppers at the Toronto Eaton Center on July 18.Fred Lum/The Globe and Mail In analyzing the causes of high inflation in Canada, many experts point to interest rates that were too low for too long, along with surging commodity prices. But Canadians may want to consider another culprit: their neighbors to the south. In a … Read more

Bank of Canada blames oil price shifts for inflation forecasting errors

Bank of Canada Governor Tiff Macklem takes part in a news conference in Ottawa on April 13.BLAIR GABLE/Reuters The Bank of Canada says it consistently underestimated the trajectory of inflation over the past year as a result of unexpected increases in global commodity prices and shifting patterns of consumer spending that it failed to account … Read more

Economists predict Bank of Canada will hike key interest rate by 0.75% on Wednesday

Economists are predicting the Bank of Canada will hike its key interest rate by three-quarters of a percentage point on Wednesday as inflation rages on globally. In Canada, inflation hit a 39-year-high of 7.7 per cent in May – well above the two per cent target rate central banks typically aim for. The Bank of … Read more

Is high inflation a short-term or long-term problem?

“I don’t think we are going to go back to that environment of low inflation,” said Christine Lagarde, president of the European Central Bank, during a panel discussion at an event last week.POOL/AFP/Getty Images In the decade before the pandemic, the chief concern of the world’s leading central bankers was inflation being too low. Today, … Read more