Weak inflation continues in Canada; could keep low-interest rate steady

   Canada column for Sunday, Aug. 20/17

   THE CANADIAN REPORT

   (c) By Jim Fox

   Still-weak inflation could result in Canada’s central bank holding off further interest-rate increases.

   While the rate of inflation advanced last month to 1.2 percent, it’s still below the Bank of Canada’s ideal target number of 2 percent.

   The bank raised its key rate by 0.25 percent to 0.75 percent last month, suggesting inflation softness was mainly temporary.

   After dipping to 1 percent in June, the lowest level in almost two years, the 4.6-percent higher prices for gasoline over a year ago were a large contributor to the July advance.

   Other higher categories were natural gas, hotel and motel accommodations and home replacement costs.

   There were lower prices for video equipment, furniture and internet access while the price for electricity in Ontario had its biggest drop in 14 years after the provincial government capped increases and prices.

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   A Canadian was killed and four others injured in the terrorist attack on pedestrians on a busy street in Barcelona, Spain.

   A van ploughed into a group of tourists in a “cowardly attack,” Prime Minister Justin Trudeau said.

   Ian Wilson of Vancouver was killed and his wife of 53 years, Valerie Wilson, was seriously hurt.

   In all, 13 people were killed and 100 injured in Barcelona and there was another death in a similar attack in the Spanish resort town of Cambrils.

   The Canadian government is advising people in Barcelona to avoid the Las Ramblas area where the attack occurred and to follow directions from local authorities.

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   News in brief:

   - Calgary Mayor Naheed Nenshi wants a review of the city’s art policy after controversy over a $500,000 public art installation by New York artist Del Geist. Called “Bowfort Towers,” the steel and rock sculpture is near Canada Olympic Park. Critics complain the towering sculpture appears to emulate Indigenous burial scaffolding. Geist said he had spoken with Blackfoot elders while the mayor said the art was thoroughly reviewed by Aboriginal experts.

   - Money set aside by bankrupt Sears Canada to pay bonuses to retain executives will form a $500,000 “hardship fund” for former employees, an Ontario court has ruled. Workers can receive up to eight weeks pay to a maximum of $12,000. The chain laid off 3,100 workers as it moves to restructure. It has been criticized for not paying retirement benefits or severance pay while offering $9.2 million in bonuses to keep key employees.

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   Facts and figures:

   Canada’s dollar has advanced to 79.48 cents U.S. while the U.S. dollar returns $1.258 in Canadian funds before exchange fees.

   The Bank of Canada’s key interest rate is steady at 0.75 percent while the prime-lending rate is 2.95 percent.

   Stock markets are mixed, with the Toronto exchange index down to 14,952 points while the TSX Venture index is up at 769 points.

   The average price for gas in Canada is lower at $1.08 a liter or $4.10 (Canadian) for a U.S. gallon.

   Lotto 6/49: (Aug. 16) 25, 29, 30, 31, 33 and 47; bonus 34. (Aug. 12) 5, 8, 13, 25, 33 and 45; bonus 38. Lotto Max (Aug. 11) 13, 14, 19, 26, 27, 36 and 37; bonus 18.

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   Regional briefs:

   - A provincial review of a devastating ice storm in northeast New Brunswick in late January found many people were ill-prepared for an emergency. Hundreds of power poles snapped, putting 130,000 people without power for days. Two people died of carbon monoxide poisoning and another 49 were hospitalized after using generators or barbecues inside homes and garages. The report makes 51 recommendations that include better co-ordination with municipal governments and improving NB Power’s messages about the anticipated length of power outages.

   - A judge has dismissed a lawsuit against the Ontario government over its controversial partial sale of Hydro One. The lawsuit was on behalf of the Canadian Union of Public Employees, saying the sale of the electrical utility was motivated “to reward benefactors of the Ontario Liberal Party.” Judge Peter Cavanagh said the suit was an “impermissible attack on a core policy decision taken by the ministers” and is “immune from judicial review.”

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Jim Fox can be reached at canadareport@hotmail.com