ETA Canada News

Data released by Statistics Canada on Tuesday brought some relief to the markets—although the inflation rate rose to 1.9% from 1.7% in July, the figure came in below economists’ expectations. This largely solidified the central bank’s anticipated interest rate cut scheduled for Wednesday.

The primary driver of this inflation increase was gasoline prices. While oil prices are still falling, the decline was not as sharp as in July, which pushed the overall inflation figure higher. However, when excluding oil prices to examine core inflation, the trend is actually improving. BMO Chief Economist Douglas Porter noted that the modest growth “would put little pressure on the central bank,” reinforcing the stability of its rate cut plan.

Markets responded strongly to the data. Traders now estimate a 93% probability of the Bank of Canada cutting interest rates by 25 basis points, up from 87% prior to the report. The current benchmark interest rate stands at 2.75%. CIBC Senior Economist Andrew Grantham was more direct: “A 25 basis point rate cut tomorrow is almost a certainty.” He explained that inflation is no longer a threat, as the economy is already in a recession with weakened demand.

Indeed, Canada’s economy is in a fragile state. High unemployment and sluggish growth—referred to by economists as “slack”—are helping to keep inflation low. Grantham believes that in such conditions, the economy needs stimulus, and the Bank of Canada will likely leave the door open for further cuts.

Despite low inflation overall, certain consumer costs continue to climb. Grocery prices rose 3.5% year-over-year in August, with meat prices increasing by 7.2%, driven largely by beef and processed meats. On the brighter side, fruit prices declined by 1.1%, mainly due to falling grape and berry prices.

Other sectors also showed mixed trends. Mobile service providers raised package prices during the back-to-school season, but the actual cost of phones and tablets declined, resulting in a net neutral effect for consumers. In the tourism sector, prices for U.S. travel services dropped by 3.8% due to reduced travel demand, but domestic hotel rates increased, especially in Nova Scotia and Newfoundland. The rise in Newfoundland was partly attributed to the upcoming Canada Games in late August.

A previous spring surge in inflation had a lesser-known cause: retaliatory tariffs on U.S. goods, which pushed food prices higher. However, Prime Minister Mark Carney has since removed most of these tariffs to support trade negotiations with the United States. According to Royce Mendes of Desjardins Bank, lifting these tariffs should bring prices back to normal, with the possibility of some goods becoming even cheaper.

The central bank has held rates steady since March, mainly to monitor the U.S. trade war’s potential impact on inflation. Fortunately, current data shows inflationary pressures to be more contained than previously feared. Food and housing remain the sectors most affected by price increases. Food inflation reached 3.4%, slightly up from July’s 3.3%, while housing cost growth slowed to 2.6% from the previous month’s 3%, providing a small relief.

Overall, the latest inflation data strongly supports an interest rate cut. With the economy under strain, inflation subdued, and key cost pressures easing, conditions appear ripe for the central bank to proceed with a 25 basis point rate cut at tomorrow’s meeting.

Canada is currently facing an unprecedented food crisis, according to Food Banks Canada’s 2025 report released Tuesday. The report reveals that food insecurity has surged dramatically, with rates rising from 18.4% to 25.5% in just two years—a 39% increase. This “shocking” statistic indicates that one in four Canadians is now struggling to access adequate food.

Simultaneously, the unemployment rate has risen sharply, increasing by 34% since 2023, with young people being particularly affected. Housing affordability has also emerged as a significant challenge, with 43% of survey respondents reporting that they spend more than 30% of their income on housing—well above what is considered reasonable.

Access to healthcare services remains a serious concern. Many individuals face barriers to medical care, and recipients of government support report that current subsidies fail to keep up with the rising cost of living. The report, based on a nationwide survey of 10,000 people, gave the Canadian government failing grades on several crucial indicators, including unemployment, food insecurity, housing affordability, and the adequacy of social support programs. Overall, Canada’s poverty reduction efforts in 2025 received a D grade, highlighting the urgent need for more effective policies.

However, the report also identifies some positive developments. Kirstin Beardsley, CEO of Food Banks Canada, noted that although government responses have not yet matched the scale of the crisis, certain newly launched initiatives are showing early success. These include an ambitious poverty reduction strategy, an affordable housing pilot program, and new social programs such as the Canada Dental Health Plan and the National School Food Program, all of which show promise for broader implementation.

Beardsley emphasized that with bold, coordinated action across all levels of government, Canada could reduce food insecurity by 50% by 2030. The report also includes specific policy recommendations, such as legislating an automatic tax filing system to unlock billions in unclaimed benefits for low-income Canadians. The Canada Revenue Agency’s automated tax filing system, piloted last year, has already helped 35,000 Canadians claim a total of $92 million in unclaimed benefits.

In addition, Food Banks Canada has urged the government to increase funding for the Canadian Disability Benefit Program. In response to the growing crisis, each province has set up food bank resource networks to support those in need, including the British Columbia Food Bank, Alberta Food Bank, Feed Ontario, and Quebec Food Bank.

 

While the data paints a grim picture of Canada’s current food security crisis, the unified efforts of policymakers and social organizations offer a glimmer of hope. The decisive factor will be whether timely and effective large-scale interventions can ensure that every Canadian has access to basic food security.

A well-known Canadian fintech platform was recently attacked by hackers, resulting in the illegal access of some customers’ “Social Insurance Numbers” (SIN) and other sensitive information. Although the platform may not be widely used in the Chinese community, this incident has still aroused widespread concern: Is our personal information in Canada safe?

On September 5, Wealth simple released an official statement saying, “The company detected unusual data access behavior on August 30. The security team responded quickly and contained the situation within hours. We are now working with external cybersecurity experts to conduct an in-depth investigation.”
“Investigation revealed that the issue stemmed from a hacked version of a specific software package developed by a trusted third party. The vulnerability allowed less than 1% of customer data to be accessed for a short period of time.”

The company stressed: “We take the trust our users place in us very seriously. Transparency is at the heart of that trust, which is why we notified customers as soon as possible and shared as much information as possible. We sincerely apologize to all affected users.”

At present, Wealth Simples has reported the incident to relevant privacy and financial regulatory agencies and stated that it will continue to cooperate with the investigation and strengthen system security. Although the company “talks easy”, the industry generally believes that “this is a serious data security incident” – although less than 1% of customers have been found to have been hacked, considering that the Wealth simple platform has approximately 3 million customers, the number of affected people may be as high as tens of thousands. What information was leaked?

Wealth simple stated that while account passwords were not accessed and funds were not stolen, the following information of affected customers may have been compromised:

For all Canadians – Users concerned about the security of their information should proactively take the following steps: monitor their credit history for unusual activity; avoid entering personal information on unsecured websites; and enable two-factor authentication to protect their accounts.

In Canada, the Social Insurance Number (SIN) is an essential nine-digit identification for every resident, temporary worker or international student.

As an “official certificate containing sensitive personal information”, this number involves multiple fields, such as “identity authentication, legal employment, social security and medical insurance, government benefits, loan subsidies, tax returns and refunds”… Once leaked, it may lead to identity theft, credit damage and even lawsuits.

Canada ‘s real estate market has been tough lately, with developers generally feeling heavy-hearted and housing construction activity in several major cities declining sharply. The Canada Mortgage and Housing Corporation (CMHC) just released its autumn housing supply report, which shows that in the first half of this year, national housing starts were basically unchanged compared with the same period last year, and growth has completely stagnated.

Tania Bourassa – Ochoa, deputy chief economist at CMHC, put it bluntly in an interview: “We’re definitely experiencing a significant level of pessimism. This is primarily due to the economic uncertainty, trade tensions, and inflationary pressures, particularly with construction materials potentially becoming more expensive due to tariffs.”

While Calgary, Edmonton and Ottawa saw decent figures, these positive numbers were offset by sharp declines in Toronto, Vancouver and Halifax.

To make matters worse, apartment construction starts are declining in most major markets across the country, and poor pre-sales have led to the postponement or outright cancellation of many projects.

The situation in Toronto is the most worrying, with housing construction activity falling to its lowest point since 1996. On a per capita basis, this is mainly due to a 60% drop in apartment starts, which is likely to be the lowest level in 30 years.

“The apartment market is really going through a correction right now,” Bourassa – Ochoa explained. “During the pandemic, everyone was rushing to buy apartments because interest rates were low. Now the situation has completely changed. Demand has dropped dramatically.”

The problem now is that the number of immigrants is decreasing, and mortgage interest rates are so high that investors are not interested in investing in apartments at all. To make matters worse, some buyers who had already pre-ordered apartments are now having trouble getting their loans approved as developers have postponed projects and drastically reduced their land purchases.

Experts predict that there may be some improvement only in 2026 and 2027, but the construction volume will still be far lower than previous levels. But there is also good news. The construction of houses specifically for rental has increased significantly, thanks to strong government support and developers turning to the rental market.

Brazza – Ochoa said: “Governments at all levels have really worked hard in recent years, introducing many new policies and financial support to promote the construction of rental housing.”

Montreal is an exception to the downturn, with housing starts increasing in the first half of this year. The city is expected to perform significantly better than other regions this year, thanks to strong rental housing construction.

Although we do not expect a bigger breakthrough, the current momentum should be maintained.

The situation in Vancouver is more complicated. Construction starts have also been declining in the first half of this year, and the performance for the whole year is expected to be relatively weak. However, the good news is that it should gradually improve in 2026 as the economic conditions improve.

Bourassa – Ochoa remains optimistic about Vancouver: “Vancouver’s outlook looks brighter than Toronto’s. While starts will indeed be lower in 2025, as is the case nationwide, we expect market conditions to improve, which should help housing construction in the region pick up.”

To address the current challenges, British Columbia and the City of Vancouver are working to revise zoning policies and development approval times in the hope of accelerating housing supply. These measures are clearly aimed at reducing risks and upfront costs for developers.

Looking at the existing home market, supply remains relatively stable. While new listings have increased, sales have also increased, leaving the number of homes available for sale largely unchanged.

The apartment market has cooled significantly, with the number of apartments under construction falling to its lowest level in 15 years.

Canada’s new Prime Minister, Mark Carney, has been facing challenges from all sides just a few months into his term. A declining economy, business exodus, a resurgent carbon tax controversy, and rising social divisions and hate speech have presented this “financial elite” prime minister with his most daunting test yet.

This week’s episode of “Inside Politics” featured blunt commenters. Host Klein opened by pointing out that Carney has made nine trips abroad since March without securing a single formal trade deal. This came on the same day that Canada’s GDP was reported to have plummeted. To make matters worse, iconic Canadian whisky Crown Royal announced it would move its bottling operations to the United States.

Winnipeg columnist Pinsky criticized it mercilessly: “The economy during the Harper era was a healthy patient. Trudeau treated the wrong disease, and Carney continued to increase medicine. As a result, the patient got worse.”

Koop, a political science professor at the University of Manitoba, cautioned that these figures aren’t just abstract numbers; they’ll be directly reflected in people’s lives—the cost of living will continue to rise. “The departure of Crown Whisky is a symbolic sign of decline that every Canadian can understand.”

Besides the economy, climate policy is also a focal point. Opposition Leader Pierre Poilievre has consistently criticized Carney’s “Clean Fuel Standard” as “Carbon Tax 2.0.” In his speech, he pointed out that the policy would increase the cost of gasoline by 17 cents per liter, ultimately driving up prices for all goods.

Host Klein also bluntly stated: “Carney never actually canceled the carbon tax, he just suspended it – long enough to win the election. Now the tax is back, and consumers are footing the bill.”

Pinsky added: “This isn’t a cold policy issue; this is a dinner table issue. Oil prices are going up, shipping costs are going up, and even families are going to be deprived of the opportunity to buy a steak.”

The latest Abacus poll shows the Conservatives at 41%, surpassing the Liberals (39%) for the first time. This marks the first time since Carney took office that the Liberals have fallen behind. The reasons are straightforward: the cost-of-living crisis, the continued squeeze on young people by the housing market, and declining confidence in the country’s direction among Canadians.

Although the Liberal Party still leads on issues such as climate change, the Conservative Party has gained an advantage on issues that concern the public the most, such as the economy, cost of living, and immigration. In other words, Carney’s “political honeymoon period” is accelerating. Another Angus Reid survey also showed that many Canadians are dissatisfied with the personal image of Conservative Party leader Poleyev, with half of the respondents even saying they would be ashamed of him becoming prime minister. However, experts pointed out that this does not prevent the Conservative Party from gaining popularity in public opinion, as voters’ dissatisfaction with the current government is constantly accumulating.

It’s safe to say that after just a few months in office, Carney has been overwhelmed by economic and social issues. Frequent but fruitless overseas visits, a resurgence in the carbon tax controversy, the relocation of iconic Canadian businesses south, and a decline in his poll numbers all indicate that his “honeymoon” period has indeed come to an end.

Canadian media commentator Michael Taube put it bluntly: “Carney is not a savior; his election victory was largely due to Trump’s unexpected intervention. His economic thinking is increasingly resembling nationalism, lacking originality and failing to address the plight of the people. With Parliament resuming in the fall, the Conservatives will continue to exert their strength, and future poll numbers are likely to become even tighter.”

Carney’s transformation from “star prime minister” to “stress test” took less than six months. The question now is whether he can come up with truly effective policies on the economy and livelihood issues. Otherwise, not only his poll numbers but also his very foundation for governing could be shaken.

Over the past weekend, two aviation emergencies occurred in succession, causing hundreds of passengers to experience unforgettable terrifying moments in the air. An Air Canada flight bound for Toronto was forced to make an emergency return due to a suspected electrical fire. 117 passengers were forced to slide to escape, and one person was sent to the hospital with a fracture.

At the same time, a Delta Air Lines passenger plane flying from Detroit to Shanghai encountered an emergency and was forced to make a 2,000-mile detour to land in Los Angeles, scaring many passengers. Let’s first look at the Air Canada incident. At 7:40 a.m. on Sunday, August 31, the Airbus A220 carrying 117 passengers and 5 crew members took off from Denver International Airport and was bound for Toronto. However, just 37 minutes into the flight, things took a turn for the worse.

Flight attendants smelled a worrying, pungent odour in the galley area, which immediately alerted the experienced crew – it could have signalled the danger of an electrical fire.

“We were in the air for about 20 minutes until the flight attendants and passengers in the rear cabin began to smell smoke,” one passenger later recalled. “It was a really scary feeling. You could clearly feel the tension in the cabin.”

Faced with the potential threat of an electrical fire, the captain made the decision to return without hesitation. The plane quickly turned around and landed safely at Denver International Airport at 8:15 am. For safety reasons, the crew decided to evacuate all personnel through the emergency slide.1 17 passengers and 5 crew members had to be evacuated safely via inflatable slides within a short period of time. Unfortunately, an accident occurred during the evacuation.

A passenger accidentally broke his ankle while using the emergency slide and was immediately taken to the hospital for treatment by the ambulance on standby.

“The plane had to return to Denver for an emergency landing, and we all evacuated through the slide. Someone did break his ankle and was taken away by ambulance.” The eyewitness passenger described the situation in detail.

In a subsequent statement, Air Canada said the aircraft itself was not damaged and was currently in Denver waiting to be put back into service after the used emergency slide was replaced. The U.S. Federal Aviation Administration has intervened to investigate the incident.

A new report shows that Canadian consumers are facing severe financial challenges. The latest data from Equifax Canada indicates that 1.4 million people nationwide were late on their credit card or other loan payments in the second quarter of this year.

While that number is down slightly from the first quarter, it represents a surge of 118,000 people compared to the same period last year. Analysts say that although the overall delinquency rate has stabilized, the financial gap between different groups is widening, especially the gap between homeowners and those without homes.

Rebecca Oakes, vice president of advanced analytics at Equifax Canada, said in an interview that the stabilization of delinquency rates is good news, but the truth behind the data is not optimistic. She noted that young people and those without homes are particularly stressed by financial pressure. Data shows that the delinquency rate for those without homes is as high as 5.26%, while the delinquency rate for homeowners is only 2.7%, a significant gap. Rebecca explained that factors such as high unemployment, economic uncertainty, and trade disruptions have left many Canadians struggling to cope with daily expenses.

Young people are the hardest hit by this financial pressure. The report shows that the average non-mortgage debt of millennials and Generation Z under the age of 36 has risen by 2% to 14,300 Canadian dollars. More worryingly, the delinquency rate for non-mortgage debt of more than 90 days for this group soared to 2.35%, a 19.7% year-on-year increase.

Rebecca analyzed that young people face a particularly severe affordability crisis, with high living costs, job instability, and limited credit access making it difficult for them to make ends meet. Meanwhile, total consumer debt in Canada continues to climb. Equifax reports that total national debt increased 3.1% year-over-year to $ 2.58 trillion, with average non-mortgage debt per capita also increasing to $22,100.

A report from TransUnion , another credit tracking agency, also showed that total consumer debt reached 2.52 trillion Canadian dollars in the second quarter, a year-on-year increase of 4.4% .Matthew Fabian , director of financial services research at TransUnion , noted that subprime consumers are more vulnerable to rising costs of living and tend to respond by increasing credit card debt.

Ontario has become the hardest hit province for financial distress, with the delinquency rate for loans over 90 days reaching 1.75%, 15.2 basis points higher than the national average. In and around Toronto, in particular, the tariff-affected auto and steel industries have further exacerbated financial pressures on residents. However, Rebecca mentioned that the financial gap between homeowners and those without homes in Ontario has begun to decline slightly after peaking last year.

For many homeowners, new challenges are emerging those who are locked in low interest rates during the pandemic may face higher payments when they renew their mortgages. Rebecca said that when mortgage repayment pressure increases, consumers often fall behind on non-mortgage debts such as credit cards first. This phenomenon is particularly evident in high-cost areas such as Toronto.

Notably, debt has grown particularly rapidly among subprime consumers, who often rely on credit cards to pay for goods and services to make ends meet, according to Matthew. For borrowers with higher credit ratings, their credit card balances grew at a rate lower than inflation, demonstrating greater financial resilience.

This debt crisis not only reflects changes in the economic environment but also exposes inequalities between social groups. Young people and those without homes are facing greater economic pressure, while high debt levels and rising living costs have made their financial situation even worse. Experts warn that Canada’s consumer debt problem could worsen if economic uncertainty persists.

Many Canadians who were planning to travel this year chose not to go to the United States, responding to the government’s call for “domestic travel.” However, studies have found that the relatively high-ticket prices for domestic flights in Canada are caused by the government.

The Montreal Economic Institute (MEI), a public policy think tank, released a report on Monday (18th) pointing out that the federal government plays an important role in the high prices of domestic air tickets. The main reason for the high prices of domestic air tickets is the high taxes levied by the federal government.”

Lowering airfares is well within the power of the federal government, which is the primary driver of ticket prices. By refusing to address these high costs, the government is making the airlines the scapegoat,” Samantha Dagres, MEI communications manager, wrote in the report. MEI pointed out that various taxes levied by the government on airports are reflected in the airfares of major routes and account for a large part of them.

The report said a Montreal- Toronto flight costs $190.04, with government fees and taxes totalling $68.04, or 35.8 per cent. A round-trip ticket between Toronto and Calgary costs $118.36, with government fees and taxes totalling $51.03, or 43% of the ticket price. A round-trip ticket between Vancouver and Toronto costs $183.06, with government fees and taxes totalling $51.52, or 28% of the ticket price.

MEI said Canadian passengers’ airfare includes an Airport Improvement Fee (AIF), which is used to indirectly pay the rent of the land where the airport is located. Airports in Canada are operated as non-profit private organizations. The land on which the airports are located is owned by the federal government, which collects rent from the airports.

“These costs are passed on from airports to airlines and then to passengers,” the report reads.

In January 2020, Vancouver International Airport increased its airport improvement fee from $20 to $25 per ticket to upgrade airport facilities. The Calgary International Airport Authority says revenue from the airport improvement fee is used to fund improvements and expansion projects at the airport.

The MEI report said Calgary International Airport pays the government a quarter of its revenue from AIF fees, while at Vancouver International Airport, the ratio is as high as one-third. The report uses flights between Montreal and Toronto as an example. Passengers pay an airport improvement fee of $77, of which $25 (about one-third) is equivalent to the rent paid by the airport to the government.

Airports are expected to pay a record $490 million in rent to the federal government in 2024, up $75.6 million from the previous year and a 68 per cent jump from $290 million a decade earlier.

BMO Capital Markets expects Canadian real estate sales to remain weak until prices fall further. A new report from BMO Capital Markets suggests that a gap between buyer and seller expectations is hindering sales. Unless this gap is closed, either through mandatory or voluntary measures, sales volumes will remain weak relative to historical levels. The report considers the latter the most realistic scenario.

Canadian real estate sales improve but remain historically low. Toronto home sales rose 10.9% year-over-year in July, marking the fourth consecutive month of gains after seasonal adjustments. While any improvement is better than no improvement, there’s a big problem with this growth.

“For Toronto, this is a very low starting point, with sales still well below the average of the past decade,” explained Robert Kavcic, senior economist at BMO. He raised a largely overlooked point: unusually weak home sales.

For context, sales in July this year were only slightly better than in July 2017, when the introduction of a tax on non-resident homebuyers triggered a mini crash. Even though home sales are now slightly better than they were during the mini crash in 2017, they’re still not strong enough to be called a “market recovery,” as suggested by the sharp drop in home prices last month.

Canadian real estate sales hampered by gap in buyer and seller price expectations

The gap between seller and buyer expectations is too wide to close deals, as evidenced by last month’s falling prices and rising sales figures. However, sales remain sluggish, suggesting more concessions are needed to restore market health.

“You could say that the wide bid-ask spread is hindering market clearing and causing homes to sit unsold,” Kavcik explained. He believes there are only three realistic solutions to this problem: forced sales, lower mortgage rates, or price cuts.

Forced sales would lead to a severe recession, unemployment, and a surge in defaults. This would force sellers to seek lower prices to avoid defaults. The bank said this was the least realistic option, “We don’t see this happening, and we don’t want to see it.

“Lowering mortgage rates is more realistic, though more realistic is not guaranteed. The bank’s calculations suggest that rates below 3% would be sufficient to stimulate a rebound in home sales, which would require a rate drop of about 100 basis points. They believe that a further 50 basis point rate cut by the Bank of Canada would be very difficult and would only help the market achieve half of its goal. “Price cuts are a last resort and a ‘market-clearing’ option, and while progress has been slow, prices have begun to fall, which is good for the market. Further price cuts will help secure more deals.”

While BMO proposed three options, two of them are unrealistic. Canada’s economy is slowing but forced selling and a deep recession are far from imminent. Lowering mortgage rates might seem straightforward, but it would require a significant contraction in demand to curb inflation.

This would also mean weak household finances, making it difficult to boost purchasing activity. Lowering prices after the biggest price increases is the most practical option, but honestly, it’s difficult for sellers to do so.

On August 11, the International Federation of Association Football (FIFA) began recruiting volunteers for the World Cup, which will begin on June 11, 2026. The World Cup will be co-hosted by Canada, the United States, and Mexico, and matches will be played in 16 cities.

FIFA expects to have around 65,000 volunteers take part. Volunteers will work not only at match venues, but also at facilities used by players and fans, such as training facilities, airports, and hotels. There are no special qualifications required to participate in volunteer work, but you must be over 18 years old at the time of application, have the right to reside in the city (country) where you will be participating, and be able to speak English.

It is desirable to also be able to speak French in Canada and Spanish in Mexico, and speaking other languages is a plus.

If the application is approved, they will take part in a “Volunteer Team Tryout” scheduled for October this year, with training scheduled for March 2026. In Canada, the event will be held in Toronto and Vancouver.