Catch me up on the big economic news in 10 minutes?

January has brought us a bunch of big business news — on food, housing, inflation, labour and more — so here’s our easy breakdown to help you catch up.

Welcome to the 62nd issue of The Supplement, a newsletter that fills in the gaps of your other news intake. This is Alex, one-third of The Supplement team! 

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This week, we’re tackling this question: Catch me up on big economic news in 10 minutes?

TL;DR: January has brought us a bunch of big business news, so here’s our breakdown to help you catch up. Prices, from food to housing, are rising. Inflation is at a 30-year peak, and the central bank is widely expected to raise interest rates soon to tackle it. And instead of the great resignation, the Canadian Centre for Policy Alternatives says the country is actually seeing a “realignment” of labour instead.

Panic! At the Grocery Store

In the largest annual increase since 2011, grocery prices rose by 5.7 per cent last year, according to Statistics Canada. And as we mentioned in our end-of-year newsletter, food prices are expected to continue increasing in 2022, potentially going up as much as 7 per cent.

It’s not hard to figure out why. First, extreme weather events stemming from climate change have impacted many food production areas — just look at the flooding devastation in BC, for example. Second, supply chain issues have persisted at every level since the pandemic began. And third, there continues to be a major labour shortage from workers being out sick as well as demanding better pay and safer working conditions. 

“We don’t compensate the people we rely on the most in this society,” Dr. Evan Fraser, Arrell Food Institute’s director, told The Globe. 

While experts aren’t expecting massive food shortages as a result of these challenges, this rise in prices is certainly exacerbating food insecurity. Not surprisingly, food banks are seeing record demands, and many are bracing for more. In taking a broader look, experts say these challenges are exposing how vulnerable Canada’s food supply chain is — an issue that needs to be tackled systemically. 

Red Hot Housing Market

Canada’s housing market continues to be red hot, with the housing price index rising by 26 per cent last year — the “fastest annual pace of gain on record.” (It now costs around $713,500  for a home in Canada on average.) Despite the price jumps, buyers weren’t deterred and created a new record for annual home sales.

A huge reason for the spicy housing market has been the long stretch of cheap mortgage rates, as Bank of Canada cut the benchmark interest rate to 0.25 per cent to stimulate the pandemic economy.

For those who are not thinking about home ownership… well, rental prices are rising too.

Soaring Inflation

Zooming out, Statistics Canada reported that inflation in Canada recently rose by 4.8 per cent — a 30-year peak. Now, all eyes are on the Bank of Canada and its pending series of interest rate hikes to tackle inflation. 

There's an expectation that an announcement could come as early as tomorrow.

The Great Realignment of Labour

We have heard a lot about The Great Resignation, but according to the Canadian Centre for Policy Alternatives, what Canada is seeing is more of “a major realignment.” 

This means that many workers in low-paying industries — which are also likely to be exposed to COVID-19 like food services, agriculture, construction and warehousing — are not just quitting for funsies, but they are seeking more stable, higher-paying jobs. (Is it a surprise that people don’t want to work low-wage and unsafe jobs during a pandemic?) For instance, restaurants and retailers are seeing big labor challenges. On the flip side, administrative and financial services are seeing huge employment gains. 

In fact, Toronto Star reporter Jacob Lorinc noted that Canada is seeing more people working now than in February 2020. 

Here’s someone to follow: 

This week, you should check out freelancer Julia Métraux — especially if you want to follow more journalists focused on disability reporting! And if you’re a student journalist in Canada, she’ll also be speaking at NASH84 conference on the topic. 

Here’s a story to check out: 

The North is often under-reported, so here are not one but two stories about Nunavut that you should read. First up, water contamination continues to be a problem in Iqaluit, as it once again found traces of hydrocarbons in its water supply recently. The city previously declared a state of emergency over water contamination in October last year, and its tap water was considered undrinkable for two months. 

For a longer read, check out this deep dive into the long-term care challenges facing Inuit elders.