Muhammad Aamir, Local Journalism Initiative Reporter, The Milton Reporter
The people of Milton celebrate the fifth consecutive month of reduced inflation amidst South Asian Heritage Month and preparations for Eid-Ul-Adha by the Muslim community.
Statistics Canada recently announced that the Consumer Price Index, which measures inflation, increased by 4.3% in March compared to the previous year. The decline in inflation was mainly due to the 13.8% decrease in gasoline prices from last year, which rose significantly after Russia’s invasion of Ukraine in March 2022. Despite this decrease from the 5.2% inflation rate in February, experts warn that further reductions will be challenging.
“Sure, we can enjoy travelling in Milton and other parts of the country. May visit our family, friends and others,” said Catherine Elizbeth. “Since inflation in the transportation sector has witnessed a decrease by 0.3 percent compared to 11.2 percent same month in 2022, the residents of town consider it is happening due to better economic policies of the Canadian government,” the Milton resident added. “I am also attached to the transport sector, so I will save a lot to expand my business further.”
However, the current inflation rate is still higher than the Bank of Canada’s target of 2%, and the price of groceries continues to be significantly higher than the headline rate. The Governor of the Bank of Canada attributes this to a tight labour market, growing wages, and corporate pricing behaviour.
“Prices of groceries matter the most for ordinary people living in Milton. We are five family members, and spending one-fourth of my income on foodstuffs causes a financial burden,” said Muslim Milton resident Ahmad Khamal. “Though relief has not made much difference, still we are relaxed that the economy is going in the right direction.”
Despite being a topic of discussion in parliamentary hearings, the inflation rate for groceries has slightly decreased. Still, it remains significantly higher than the headline rate. Groceries were 9.7% higher in March than the previous year, down from 10.6% in February. During testimony before the House of Commons standing finance committee, Bank of Canada Governor Tiff Macklem pointed out that a tight labour market and growing wages contribute to higher inflation. However, he also identified “corporate pricing behaviour” as a critical factor responsible for this trend.
“It’s too easy for companies to pass through higher prices. They don’t need to worry about losing customers,” said Macklem.
Commenting on low inflation on shelter, Dev Agarwal, a Halton resident, said, “The residents of Milton are hoping for relief from the reduced inflation rate for shelter. However, many residents still struggle to cope with the increasing cost of living, as prices for essential items increase alarmingly.”