Canada’s Inflation Inches Higher
Canada’s inflation rate increased slightly to 1.9% in January, just below the Bank of Canada’s (BoC) 2% target. Key takeaways:
📈 Gasoline prices rose, contributing to the increase
🍽 Food prices dropped due to the sales tax holiday
🏦 Core inflation remains sticky, affecting businesses and households
While the BoC is expected to gradually cut interest rates, ongoing tariff concerns may influence future policy decisions.
Market Reactions to U.S. Trade Policies
The threat of tariffs is creating uncertainty across industries:
🏠 U.S. Homebuilders: The NAHB Housing Market Index fell to 42 in February, its lowest since September, as builders worry about rising costs.
📉 Mortgage Market: Mortgage applications declined 6.6% last week, with 30-year fixed rates holding steady around 6.93%.
🚗 Japan’s Economy: Japan expanded 0.7% in Q4, but proposed U.S. auto tariffs could slow future growth.
🇲🇽 Mexico’s Economy Shrinks: Mexico contracted 0.6% in Q4, facing weakened consumer demand and tariff-related uncertainty.
Tariffs remain a key factor influencing markets, and businesses are closely monitoring potential trade restrictions.
What Does This Mean for Your Financial Future?
With inflationary pressures shifting and global market volatility continuing, now is the time to review your financial strategy. Whether you’re planning for retirement, adjusting investments, or looking for tax-efficient savings options like RRSPs, having a well-structured plan is crucial.
📢 Book a free consultation today to discuss your strategy:
🔗 https://safavifinancial.zohobookings.eu/#/30mins
