Finance Minister Chrystia Freeland says that Canada has hit a “milestone moment” as the nation’s inflation rate dropped below 3 percent in June, according to a recent Statistics Canada report, which is its lowest point in about two years.
“That is a significant moment. It should provide a lot of relief to Canadians,” Ms. Freeland told reporters via teleconference on July 18 from Delhi, India, where she was attending a G20 finance ministers’ meeting, according to CTV News.
“I really want to thank Canadians, it has been a really tough time economically since COVID first hit, since we had a recession, followed by all the strains of reopening. And this is really a good moment.”
The last time Canada’s inflation rate had fallen below 3 percent was in March 2021.
“It has been a real struggle for Canadians and the Canadian economy to get back down to 2.8 percent, and I am really grateful to everyone who has sort of [stayed] the course,” Ms. Freeland said.
Reporters asked Ms. Freeland for her take on the central bank’s assessment, but the finance minister said she would not “make predictions or forecasts.”
Inflation
Despite the drop in the country’s inflation rate, Statistics Canada found in its recent report that Canadians are still paying substantially higher-than-usual prices for groceries, as prices rose 9.1 percent year-over-year last month, which was slightly faster than in May.Opposition parties pointed this out in responding to Ms. Freeland on July 18, with Conservative Deputy Leader Melissa Lantsman saying that the finance minister’s comments were “as out of touch as it possibly gets.”
“Grocery prices up 9%. Mortgage interest up 30%. Food and housing keep getting more and more expensive, but sure ’milestone moment' for her,” she wrote.
NDP finance critic Daniel Blaikie also commented on the new Statistics Canada data, saying that while the new inflation numbers “show some progress,” the cost of everyday essentials like food and gasoline still remain “stubbornly high” across the country.