Canadians are likely to feel the pinch amid rising prices for groceries, gasoline, clothing and more amid a higher rate of inflation.
With inflation well above the two percent target, economists expect the Bank of Canada to raise its key interest rate again in October. Annual inflation was 7.0 percent in August, down from a peak of 8.1 percent in June.
Meanwhile, one economist is warning that Canada should be braced for a recession in early 2023.
“I don’t think we’re in a recession yet, but I think one is on the horizon,” David Doyle, chief economist at Macquarie Group, told BNN Bloomberg. “Our baseline is that Canada will enter recession in the first quarter of 2023.”
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What are some of the steps you are taking to reduce financial stress with higher inflation rates and a potential recession on the horizon?
Are you cutting back on spending at the grocery store? Do you commute more and drive less? Will you refrain from buying candy for Halloween?
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With files from BNN Bloomberg and The Canadian Press
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