The country's inflation rate is rising. For the business and commercial realm in Canada, that's not such great news. In fact, having climbed to 3 per cent, that rate is the highest it has been in seven years. But what does that spike really mean in the giant scheme of all things in business?
Economists blame the increase on elevated prices for fuel, tourism and airline tickets. Costs for energy have also skyrocketed by more than 14 per cent in the last year. But where Canadians are really feeling the pinch is at the gas pumps. Gas prices have risen more than 25 per cent in a year. Mortgage interest rates are up, and it costs more to eat out since restaurant food is also more expensive; generally, this means that Canadians are paying more for just about everything -- except phone prices and natural gas for which prices have slightly decreased.
All this means that the dollar is hovering at around 76.50 cents U.S. Investors are speculating that these ducks lined up in a row mean that the Bank of Canada is poised to hike the interest rate soon, which, on the plus side, makes the country more appetizing to hungry foreign investors. Maintaining inflation at a stable rate means interest rates will, indeed, rise within the next month or so.
Canada's business and commercial world can be fast-paced and exciting. It can also be complex and confusing. Business people who may be thinking about expanding their knowledge or thinking about buying, selling, investing or amalgamating may want to talk to a lawyer in Canada about their prospects. Getting legal advice prior to making any business decisions may mean the difference between a deal that merits a champagne toast or one that would be best forgotten.