Higher interest rates will further squeeze food affordability for consumers: Expert
BNN Bloomberg
Canadian consumers are being squeezed at both ends as higher interest rates impact shelter costs and food affordability, according to Sylvain Charlebois, director of the Agri-Food Analytics Lab at Dalhousie University.
On Wednesday, the Bank of Canada raised interest rates for the sixth-straight time. The central bank hiked its benchmark overnight lending rate by 50 basis points to 3.75 per cent, which was less than the 75-basis-point hike expected by the majority of economists.
Charlebois said this hike will impact food affordability and how much money Canadians can spend on groceries.
“With hikes, food affordability is being compromised on the backhand, as many households will have less money to devote to food, compared to just a few months ago,” Charlebois said over email on Wednesday.
