Olivia Cao / Staff Reporter
According to the article “What’s happening to inflation and why it matters” written by Tiff Macklem, as a result of the global COVID-19 pandemic and Russo-Ukrainian War, Canada have faced high inflation.
People are feeling the pinch of higher prices because of inflation, especially in B.C. where the cost of goods increased slightly in July, according to Statistics Canada. Compared to this time last year, some groceries cost consumers more than 10 per cent more, rents in the Vancouver area have also gone up a lot.
Inflation brings a significant impact on students by raising the prices of everyday essentials such as food, shopping and transportation, adding a lot of financial stress to students.
Annie He, grade 12, said, “As I know, my daily expenditure in school and outside school has spiked. The price of lunch in the cafeteria increased by 50 cents to a dollar, so I bring lunch from home now to save money. I chose to take public transportation most time due to Uber price increase. And before I could buy a lot of things for $100, now I can only buy 70% of what I could before.”
“My parents and I moved here from Prince Edward Island last year, and in just one year, prices in Vancouver have raised a lot. The original prices in Vancouver are higher than the prices in PEI, if the rent near UBC and groceries continues to rise, I may choose to gap a year to do part-time work before going to the university,” Said Irene Hu, grade 12.
Based on Statistics, Canada inflation rate for 2021 was 3.40%, a 2.68% increase from 2020, grocery prices even increasing at a pace of more than 11%. In June of this year, inflation jumped to 8%, marking a 31-year high. It has had many negative effects on Canadians, food bank use is rising, seniors are accruing more debt, and affordable rentals are in scarce supply.
“I planned to buy a car when I enter the university so that life would be easier,” said Linda Huang, a grade 12 international student. “However, due to global inflation, the exchange rate of the Canadian dollar to the Chinese yuan is increasing, and the price of gas is also rising, so my parents no longer have enough money to support me in buying a car after paying the high tuition fees,” Added Huang.
According to the global news “Bank of Canada expected to announce another interest rate hike amid recession fears” written by Nojoud Al Mallees, the Bank of Canada announced another hefty interest rate hike on Wednesday, which is the sixth consecutive time it raises interest rates this year.
Inflation will end 2022 at a still-high 8.0% rate, but should drop to 3.5% by the end of 2023. Price growth will slow as the economy slows next year, based on the article “High inflation to persist for 2022, cooling next year” written by David Payne.
When asked about the thoughts on the news, Hu commented, “The interest rate increase is good news for me. I’m going to put my money saved from last year’s part-time job into time deposit for my university tuition next year.”
Sources:
“What’s happening to inflation and why it matters”
“Inflation: prices on the rise”
“What’s happening to inflation and why it matters”
“How Alberta stacks up when it comes to helping people cope with inflation”
“Bank of Canada expected to announce another interest rate hike amid recession fears”
“High inflation to persist for 2022, cooling next year”
“Inflation down across Canada, up slightly in British Columbia”