'Perfect storm' swirls as Canadians face hot inflation, rising rates yyc calgary
“That’s because the cost of food has risen … but also because of the number of people that are turning to a food bank right now,” said Wilson. “It is unfortunately a perfect storm.”
The result is Canadian consumers and small businesses are being squeezed from both sides, prompting politicians, unions and even some economists to implore the central bank to slow its pace of tightening.The bank this week signaled its tightening campaign was nearing its peak, but made clear it was not done yet, as it hiked rates by 50-bps to a fresh 14-year high.
Wes Farnell, who runs Eight Ounce Coffee in Calgary with his wife Jen, said their specialty coffee equipment business was growing by 25% to 35% a year before the pandemic, and then boomed as lockdowns led to surging demand for high-end lifestyle appliances. The pain is also being felt on the farm, where record high debt levels and surging operating costs are weighing on many farmers, despite strong grain prices.