Canada Report: Central bank taking criticism for slow reaction to inflation

A family take pictures in the shade on a hot day in Toronto on Thursday.

Canada’s central bank is facing severe criticism over its handling of runaway inflation and threats of a recession.

The higher costs for gasoline, food and many commodities are also dampening plans by Canadians to take their traditional summer road trips.

Critics say the Bank of Canada has misjudged inflation as household debt rises and is playing catch-up and forced to be more aggressive with raising interest rates.

The Canadian economy may need to find a way to permanently adjust to higher oil and gas prices, warned Stephen Poloz, former bank governor.

“This is a reality even when the cost of other goods starts to fall,” he added.

Statistics Canada says the country’s inflation rate is at a 40-year high of 7.7%.

Gas prices are up 48% over last year as the single biggest jump affecting the inflation rate. The average cost of food items is up 9.7%.

Pope Francis to visit former residential school site

Pope Francis will visit a former Alberta residential school site and meet with survivors during his visit to Canada next month.

“We pray this pilgrimage will serve as another meaningful step in the long journey of healing, reconciliation and hope,” said Archbishop Richard Smith of Edmonton.

Hundreds of unmarked graves of former students were found at the schools where children were uprooted from their families to be “Canadianized.”

The Pope is expected to deliver an apology for the Roman Catholic Church’s role in the schools during the trip and follow up on an Indigenous delegation to the Vatican earlier this year.

Then, the Pope apologized for the conduct of church members involved in the former schools.

The papal visit will start in Edmonton on July 24 and end in Iqaluit on July 29.

In brief

• The biggest party in the country will take place July 1 to mark Canada Day, the country’s 155th birthday. Lavish street parties highlighted by fireworks displays are held in cities and towns and some U.S. cities where Canadians congregate. On July 1, 1867, Canada became a country with a new federation and constitution, formerly the British North America Act. In the National Capital Region, Ottawa, festivities take place in front of the Parliament Buildings.

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Facts and figures

• Canada’s dollar is higher at 77 cents U.S. while the U.S. dollar returns $1.29 in Canadian funds, before exchange fees.

• The Bank of Canada’s key interest rate is steady at 1.5% while the prime lending rate at commercial banks is 3.7%.

• Canadian stock markets are higher, with the Toronto index at 19,050 points while the TSX Venture index is 641 points.

• The average price for gas in Canada is lower at $2.04 a liter or $7.75 for a U.S. gallon in Canadian funds.

• Lotto Max: (June 21) 2, 4, 5, 22. 32, 40 and 50; bonus 43. (June 17) 1, 10, 12, 21, 30, 39 and 40; bonus 38.

• Lotto 6/49: (June 22) 7, 10, 11, 18, 27 and 42; bonus 25. (June 18) 4, 6, 20, 21, 24 and 44; bonus 5.

Regional briefs

• Ontario Premier Doug Ford unveiled his slightly larger cabinet on Friday, giving Sylvia Jones the busy role as minister of health, taking over from Christine Elliott, who did not seek re-election. The new executive council after last month’s major victory for Ford’s Conservatives has 30 members, up from 28 and includes seven women.

• Scientists say last year’s heat dome over the west coast of British Columbia and Washington State are expected to have “far-reaching effects” on the ecology of beaches, bluffs, inlets and river deltas. This is in addition to the impact on fisheries and cultural connections that the land, sea and sea life provide. The heat over the West Coast last summer led to the deaths of 619 people and a billion sea creatures, a survey found, saying such scorching heat will become more frequent.

This article originally appeared on The Ledger: Canada Report: Critics say central bank acted too slow on inflation