Inflation keeps going up. How do you protect yourself from rising prices?
As inflation rates accelerate at the fastest level in 30 years, people may be wondering how they can best protect their personal finances.
According to new data released by Statistics Canada on Wednesday, inflation was 4.8 per cent last month in Canada, up from 4.7 per cent in November. That pace hasn't been seen since September 1991.
In Ontario, inflation was even higher at 5.2 per cent.
CTV News Toronto asked Chief Financial Commentator Patricia Lovett-Reid what this means for people and how they can prepare for what’s ahead.
Lovett-Reid said the most immediate effect will likely be an increase in interest rates.
"It would be hard to find an economist on Bay Street that doesn’t think the bank isn't going to move at least 25 basis points next week," she said.
"We're paying more for just about everything. So, for the first time in a long time, we want the bank to raise interest rates to slow inflation down."
People wearing masks shop at a grocery store in Moncton, N.B., on Wednesday, September, 22, 2021. THE CANADIAN PRESS/Christopher Katsarov
She said raising interest rates will lower people’s ability to spend, and in turn keep inflation rates in check.
"It reduces the purchasing power of people who have variable rate mortgages that are tied to the bank rate, because they have to put more money towards their mortgage,” Lovett-Reid said. “They have less to go out spending."
So what should you do?
Lovett-Reid suggests is people "do their homework" and explore the options with their mortgage.
She said it could be beneficial to "start thinking about moving into fixed-rate mortgages."
While Lovett-Reid said that won't be the solution for everyone, it't important to at least ask questions.
"I think you have proactive at this point," she said. "You don't want to become complacent."
CUT BACK ON SPENDING
Lovett-Reid said during times of high inflation it's important to understand where all your money is being spent and cutback on unnecessary goods.
She said people should ensure they know where each dollar they earn is spent and constantly ensure they're "getting the best bang for their buck."
She said a good example of inflation right now is streaming services. This week, Netflix announced it would be raising it's prices for users.
"They're small amounts, but incremental amounts add up to a lot of over the year," she said.
Lovett-Reid said while the news headlines about inflation can seem scary for people, it's important to understand your own financial situation.
"I think the fact is that you have to understand where your household is at, and what your basket of goods really cost," she said. "For example, we saw inflation tick higher for cars, but you may not be in the market for a car."
She said people need to understand their needs "versus panicking from a headline number."
Overall, Lovett-Reid said there isn’t one single thing that will help save consumers money during this period of high inflation.
"It's going to be a series of doing a lot of little things," she said. "It's not about the big win."
Toronto Top Stories
CTVNews.ca Top Stories
Fourth-grade teacher Irma Garcia was killed in her Texas classroom on Tuesday, massacred along with her co-teacher and 19 students. Two days later, a family member says her brokenhearted husband died.
The gunman who massacred 19 children and two teachers at a Texas elementary school was inside for more than an hour before he was killed in a shootout, law enforcement authorities said Thursday amid mounting public anger and scrutiny over their response to the rampage.
Man fatally shot by police near Toronto elementary school after reportedly walking streets with rifle
One man is dead after being shot by police near a Toronto elementary school on Thursday afternoon. The incident sent hundreds of students into lockdown.
The Edmonton Oilers defeated their Alberta rival Calgary Flames 5-4 in overtime in Game 5 of their second-round NHL playoff series Thursday night to advance to the Western Conference final.
A 10-year-old boy in a classroom just down the hallway from the room where a gunman killed 19 children and two teachers in Uvalde, Texas on Tuesday said the experience of hiding during the shooting was 'terrifying.'
In the wake of a horrific mass shooting at an elementary school in Texas, Prime Minister Justin Trudeau has signalled that the Canadian government will be moving ahead on new gun-control measures 'in the coming weeks.' In previous Parliaments, the Liberals have made changes to Canada's gun laws, but in the 2021 federal election, Trudeau promised to go further.
A massive Russian plane that was grounded at Toronto Pearson International Airport back in February is racking up a substantial parking bill.
There are now 26 confirmed cases of monkeypox in Canada, according to an update from the Public Health Agency of Canada, and the virus has been detected in a new province, with one case in Ontario.
The number of job vacancies across Canada reached an all-time high in March, ending a five-month decline, Statistics Canada said Thursday.
Quebec says it is ready to vaccinate people who have come into close contact with monkeypox as soon as Friday.
The English Montreal School Board (EMSB) announced late Thursday it has hired a legal firm to start a legal action to contest the validity of Bill 96, An Act Respecting French.
Quebec Premier François Legault may not have expected quite this type of fallout from Bill 96, but he found himself hammered by questions on Thursday -- about Quebec independence.
A team of investigators from the Transportation Safety Board of Canada were deployed to London Thursday in regards to a plane crash involving a small aircraft.
After a two year break due to COVID-19, Sunfest is set to return to Victoria Park in downtown London with its largest line-up to date.
A Kitchener family has raised concerns about a recent act of vandalism and they're frustrated with the response they received from the Waterloo Regional Police Service.
The driver of a tractor trailer is facing multiple charges after the vehicle struck a concrete barrier on the Conestoga Parkway in Kitchener.
The Guelph Nighthawks are facing off against the Scarborough Shooting Stars in their home opener Thursday night, and some fans are also hoping to see a different kind of star.
For the last three terms, NDP's John Vanthof has been Timiskaming Cochrane's MPP.
The Progressive Conservative provincial election candidate in Sault Ste. Marie is taking issue with a suggestion from the New Democrats that he does not live in the riding he’s running to represent.
The Greater Sudbury Chamber of Commerce honoured 10 of Greater Sudbury’s outstanding entrepreneurs and businesses Thursday at the 25th annual Bell Business Excellence Awards gala.
Five days after a devastating storm hit Ottawa with wind gusts of 190 km/h, 37,000 homes and businesses remain without power.
Several Ottawa schools will remain closed for a fourth straight day on Friday as the cleanup continues following last weekend's powerful storm.
The public will hear from Ottawa's former police chief next week for the first time since he resigned at the height of the 'Freedom Convoy' occupation of downtown Ottawa.
Family and friends are mourning the loss of an 18-year-old Dover Township woman after a fatal crash.
The Liberal candidate in Chatham-Kent-Leamington is withdrawing from the provincial election.
When Eric Wortley became the new owner of an electric vehicle, the Amherstburg, Ont. resident never planned on documenting what it's like on social media. But as Windsor's auto sector started moving toward electrification, he noticed more of his friends debating the pros and cons of EVs over social media.
The teenager who pleaded guilty to first-degree murder in the stabbing death of another teen inside a Barrie, Ont. group home in 2019 was in court Thursday for a sentencing hearing.
Police arrested a Newmarket man accused of a violent sexual assault on a senior.
Wasaga Beach residents want their voices heard as they seek transparency from the town over plans to sell portions of beachfront property.
A retired senior Mountie has described to an inquiry his dismay that it took five hours before anyone told him about eyewitnesses who had encountered a mass killer while fleeing the 2020 shootings in Nova Scotia.
Halifax Regional Police is investigating a report of "multiple shots fired" in a neighbourhood in Dartmouth, N.S.
Health officials in Nova Scotia are reporting a decrease in new deaths, cases and hospitalizations in the province's weekly COVID-19 update.
A Calgary judge has sentenced a young man who shot and killed another man to life in prison with no chance of parole for 12 years.
The CFL Players' Association ratified its new collective bargaining agreement with the CFL on Thursday night.
A man told court Thursday he was ready to accept punishment after he pleaded guilty to second-degree murder in the death of his three-year-old daughter.
While his job was to keep the school's hallways clean, his impact went far beyond that – touching the lives of the students who walked within them.
The province says it hopes to reopen Highway 75 in the 'near future' but said it all depends on safety.
'We're starting to see some of those worst-case scenarios': Fraser Valley residents warned to be prepared for potential spring flooding
The Fraser Valley Regional District is urging those living in low-lying areas to have "go kits" ready and important documents easily accessible should homes have to be quickly evacuated.
Fewer than half of COVID-19 deaths reported since B.C. changed counting methods were caused by the disease
Data released Thursday by the B.C. Centre for Disease Control provides some insight into just how much overcounting of COVID-19 deaths the switch to "30-day, all-cause mortality" has created.
Waiting for passports has been stressful and heartbreaking for the family of a B.C. cancer patient who wants to travel with her grandchildren to Disneyland while there's still time.
The spring sitting of the Alberta Legislature wrapped up two weeks earlier than expected Thursday with the NDP continuing to hammer the government on a promise to deliver utility rebates to Albertans.
Mayor Amarjeet Sohi has two weeks to provide a new plan to the province, after the justice minister accused him on Thursday of "not providing or maintaining adequate and effective policing services."