Bank of Canada says food inflation likely to remain high for rest of 2026

OTTAWA - The Bank of Canada says food inflation is likely to remain high through the second half of the year as the war in Iran pushes the cost of fuel and farming higher.

In its monetary policy report, the central bank says higher energy prices will continue to weigh on the cost of fertilizer, which is highly dependent on natural gas, as well as other agricultural input costs.

Overall, the central bank is forecasting inflation will slow to 2.5 per cent over the second half of 2026, after hitting 3.2 per cent in May.

The central bank says its forecast for inflation is highly dependent on developments in the Middle East, and although oil prices have come down from their recent peak in April, they remain volatile as hostilities between the U.S. and Iran picked up again last weekend.

U of W falls back on tuition hikes amid budget crunch

The University of Winnipeg has joined other public post-secondary institutions across the province in hiking tuition rates by four per cent — as high as possible — for the fall.

Domestic fees are increasing by more annually in 2026-27 than they have in eight years in Manitoba.

International rates, which are unregulated and roughly four times those paid by their Canadian peers, are rising even higher.

U of W’s board of regents approved a $180.7-million budget on June 22 that increases costs in undergraduate and graduate programs and phases out “low rate” courses on the downtown campus.

Kids Market ringing up joy at Victoria Beach

If Maude Delaquis ever runs a fashion empire, she can say it all started at the beach.

The 11-year-old is one of more than 30 budding merchants who will hawk their wares at the Village Green Bakery Kids Market in Victoria Beach on Sunday.

The annual event is meant to encourage creativity and entrepreneurial spirit by giving children under the age of 14 a place to sell homemade items.

Maude will be promoting Bonjour Soleil, a line of T-shirts featuring a Victoria Beach-themed decal she created. It’s her fourth year participating.

Apartment rents continue to climb in Manitoba

Winnipeg saw a marginal increase — 0.9 per cent — to $1,678, according to a July 2026 Rentals.ca report, which shows June data.

Countdown is on for Camp Arnes

The anticipation of leaving for summer camp grows as Kyla Gearo walks her kids through a list of everything they’ll need in preparation for their five-day adventure.

As each day passes, her kids grow increasingly more excited as the reality of getting to go to Camp Arnes sets in — a reality Gearo didn’t think was possible before help from the Sunshine Fund.

With the help of Free Press readers, the Sunshine Fund has been able to send children to camps across Manitoba and northwestern Ontario for 46 summers and sent 681 kids to camp in 2025.

“I wouldn’t have been able to afford it without it, that’s for sure,” said Gearo.

More cans off city streets, more money in pockets

Empty beer cans on the street may be litter, but to some they provide income to afford basic necessities.

“It pays for stuff that we need, something to eat, something to drink and other stuff like personal hygiene,” said Darius Campbell, who picks up the empty cans and returns them to the Northern Hotel on Main Street each day.

As of July 1, Manitoba Liquor and Lotteries changed guidelines on its container deposit program. Deposits are paid — and refunds given — for cans of coolers, cocktails, ciders, sodas and seltzers containing alcohol that are returned to vendors. It’s worth 10 cents for a regular bottle, up to $40 for a keg over 19 litres.

“That’s more money in our pocket than it being littered on the ground all over the city,” said Campbell, who lives in the West End.

Governing by gimmick

We all know that politicians can be opportunists sometimes, not necessarily for venal reasons like personal financial gain, but to win the hearts and minds of voters.

So, for example, if the current zeitgeist is all about the escalating cost of living, the opportunist politico will miraculously find ways to look as if they’re doing something to address the problem, when what they’re really offering is a flashy gimmick.

I am referring, of course, to our very own provincial government which seems to have become very skilled in the art of governing by gimmick.

It all began with the gas tax holiday — an action touted as relief for a general public facing ever rising prices at the gas pump. In the end that “solution” cost the government more than $340 million in revenue, and for those of us without combustible engines, provided exactly zero in savings.

Seven of city’s 10 best-paid employees work for police

The City of Winnipeg’s 2025 compensation disclosure document, released Friday, shows seven of the top 10 highest paid employees are police officers.

Winnipeg Police Service Chief Gene Bowers earned $313,467 during his first year in the position, coming second only to an unnamed police superintendent who took home $491,926.

Collectively, WPS members earned $2.1 million of the total $2.9 million paid to the city’s highest earners, equivalent to about 72 per cent. That includes a constable ranked No. 8 in the top 10 after earning $260,234 — more than outgoing Winnipeg Fire Paramedic chief Christian Schmidt (No. 9) at $255,036.

Schmidt’s successor, Ryan Sneath, who was appointed chief this week, earned $247,432 last year.

Farmers just one link in long supply chain

Farmers are hardly front and centre in newly released federal and provincial reports analyzing why food has become less affordable for many Canadians.

The word “farmers” doesn’t even appear in the Manitoba government’s Grocery Price Strategy report until Page 7.

That’s a good thing, because it signals a new level of awareness in how we collectively view the food system. The focus is shifting from front-line farmers to the largely invisible and complicated supply chain connecting field to table.

It might even change how farmers see themselves.

Summer school for RESPs

If you’ve been saving for years for your child’s post-secondary education, and they are now ready to pursue higher learning in the fall, it’s not unusual to feel a little lost regarding how best to use that money.

That’s because the main savings vehicle for post-secondary learning, the Registered Education Savings Plan (RESP), is often complicated to unwind.

“There are definitely some unique aspects to taking out money from a RESP,” says Anthony Maros, senior private banker at BMO Private Wealth in Winnipeg.

Unlike a RRSP (Registered Retirement Savings Plan) where every withdrawal is taxable because all contributions are made with after tax money (hence the deduction on contributions), RESPs involve taxable and non-taxable withdrawals.

Transit says it’s short $6.5M to provide free rides for youth year round

Winnipeg Transit has proposed to let youth ride buses for free for only seven months, stating the $10 million the provincial government provided for a year of that service won’t cover the entire cost.

In a new report, Transit says the program, which is meant to offer no-cost rides to youth aged 11 to 17 and high school students aged 18 to 21, would cost at least $16.5 million to implement for 12 months.

The program stems from the pledge in the province’s 2026-27 budget to invest “in free transit for kids and youth.”

Instead of exceeding the amount of government funding, Transit proposes to offer the free rides from September to March 2027, pending city council approval.

Public support is strong for two per cent inflation target, Bank of Canada says

OTTAWA - The Bank of Canada says there is strong support for its flexible inflation targeting and the two per cent target rate in a new report.

The central bank consulted with stakeholders and the general public as part of the renewal process for its monetary policy framework agreement with the federal government, which it undergoes every five years.

"It was important for the bank to hear from Canadians as part of this process because inflation and interest rate decisions affect their day-to-day lives," governor Tiff Macklem said in a statement Thursday.

The review comes after the spike in inflation in 2022 that saw the annual rate peak at 8.1 per cent, a 39-year high. Though the pace of price growth has normalized since then, higher prices have taken a toll.

Apple increases prices for Macs and iPads, blaming a shortage of memory chips

Apple on Thursday announced an increase in prices for Macs and iPads, citing a memory chip shortage brought on by the artificial intelligence boom.

The Cupertino, California-based company called the demand spike an “unprecedented challenge” for the consumer electronics industry.

“The rapid expansion of AI data centers has created an extraordinary surge in demand for memory and storage. We have never seen a component price increase this much, this quickly,” the company said in a written statement.

The new, entry-level MacBook Neo will now cost $699, up from $599. The 512 gigabyte MacBook Air now costs $1,299, up from $1,099. The one terabyte MacBook Pro is $1,999, up from $1,699.

Some airlines reduce fuel surcharges as oil falls, while others hold steady

CALGARY - Some Canadian airlines are scaling back fuel surcharges as fuel prices fall, while others are holding steady for now.

WestJet Airlines says it has reduced its levy on companion vouchers to $40 from $60 per round trip or one-way fare.

Porter Airlines has cut the fuel surcharge for new reward flight bookings by half to $20, and says it will make further adjustments as conditions change.

Meanwhile, Air Canada is managing fuel costs through its regular fare structure, though a surcharge remains in effect on ground packages offered through its vacations business.

Carney says B.C. condo buyout proposal is about affordability, not bailouts

OTTAWA - Converting British Columbia's glut of unsold condos into affordable housing is about supporting Canadians, not distressed developers, Prime Minister Mark Carney said Thursday as he defended his government's proposal.

Speaking to reporters at a press conference in Ottawa, Carney said the Liberal government had done a poor job of explaining the program laid out in Vancouver a week earlier.

A press release issued by the Prime Minister's Office on June 18 said Ottawa and the B.C. government plan to "leverage innovative financing tools to convert more than 2,200 vacant condo units in priority growth areas into affordable homes."

Carney said Thursday the federal government would put up 10 per cent of roughly $1.45 billion in total potential spending to convert the units, with the B.C. government footing the rest of the bill.

These economists are worried Canada has a data quality problem

OTTAWA - Most economists, including at the Bank of Canada, were a bit surprised when Statistics Canada reported late last month that the economy contracted slightly over the first three months of the year.

The consensus estimate among economists and monetary policymakers was for real GDP growth of roughly 1.5 per cent annualized in the first quarter.

When the figures actually showed a 0.1 per cent decline, forecasters were left scratching their heads.

Incremental data released by StatCan leading up to the quarterly GDP result largely suggested Canada's economy was in line for modest growth to start the year.

AI is helping gas stations collude to raise California fuel prices, lawsuit says

AI-powered software has allowed gas station operators across California to illegally collude and drive up prices at the pump, according to a federal lawsuit.

The proposed class action lawsuit, filed Monday, accuses gas station giants including Marathon and Circle K of violating California’s antitrust law through Kalibrate, a fuel-pricing software system used across the world. The plaintiffs describe Kalibrate as the “central nervous system for a conspiracy to extinguish retail price competition among gas stations.”

According to the lawsuit, Kalibrate helps “coordinate high prices” and even discourages its users from pricing their gas lower than competitors, saying that doing so would trigger a “downward spiral.”

“Kalibrate promises that if gas stations surrender their pricing decisions and competitively sensitive cost and volume data to Kalibrate Fuel Pricing, the software will enable them to avoid competing with other area stations and to charge higher prices to consumers,” the lawsuit said.

Bank of Canada officials seemed unfazed by the surprise economic decline in Q1

OTTAWA - Officials at the Bank of Canada were seemingly unfazed by economic weakness to start the year as they debated where to take the policy interest rate earlier this month.

The central bank today released a summary of the deliberations that led its governing council to hold the policy rate steady at 2.25 per cent for a fifth consecutive time on June 10.

Officials acknowledged in the summary that they were surprised the Canadian economy posted a slight contraction in the first quarter of the year. The Bank of Canada had forecast a 1.5 per cent annualized growth rate in real gross domestic product for the first three months of 2026.

But looking through some recent volatile data, governing council agreed that not a lot had changed in the economy since its decision in April.

Homes under $500,000 account for growing proportion of Ontario real estate: report

PICKERING - A new report says homes valued under $500,000 are taking up a bigger share of Ontario's real estate landscape, led by a shift in the condominium market.

New data released by the Municipal Property Assessment Corp. showed those lower-valued homes now account for nearly 24 per cent of Ontario's real estate market, up from 17 per cent in 2022.

Despite that improvement, which MPAC said signals "a rebalancing in the housing market," the report said the share of homes priced below $500,000 is still well below that of a decade ago when they made up 67 per cent.

"The past decade has reshaped Ontario's housing market, and while prices remain elevated, there have been corrections from peak conditions," said the organization's chief assessor and data officer Greg Martino in a news release.

AI stock slump raises the question if investors are just taking profits or getting very nervous

Technology companies are spending big to incorporate artificial intelligence into their businesses and to build huge data centers. Investors who had jumped on the bandwagon appear to be having second thoughts.

Proponents of artificial intelligence see it as the next great revolution for the global economy. The revolution won't come cheap. Just four companies — Alphabet, Amazon, Meta Platforms and Microsoft — plan to spend up to $720 billion this year, primarily on AI data centers.

This week, investors are looking at the huge sums being spent and questioning whether AI can produce the profits and productivity necessary to make all the investment worth it. Critics have been talking about the possibility of a bubble in AI investment. On Monday, Amazon and Alphabet fell about 5%.

On Tuesday, several companies that make the chips needed for the data center buildup — Nvidia, Micron Technology, Broadcom and Lam Research — led the market lower.

Economic uncertainty weighs on potential homebuyers, RBC poll says

TORONTO - A new report says prospective homebuyers see a potential window to strike a deal, but economic uncertainty is weighing on their decision.

Royal Bank of Canada's latest home ownership poll says that among those who intend to buy within two years, 45 per cent say now is the right time. However, 75 per cent of them say economic uncertainty is making them more cautious.

It also says 72 per cent of those looking to buy within two years believe the uncertainty is the biggest challenge to buying a home, while 67 per cent are worried it will affect their homebuying plans.

The Canadian economy has struggled in recent months as it continues to adjust to U.S. tariffs and a murky future for the trade agreement with the U.S. and Mexico, while the war in the Middle East sent oil prices soaring.

No evidence of generalized inflation despite May price hikes: BoC’s Macklem

Bank of Canada governor Tiff Macklem says he's not seeing evidence of generalized inflation even as price pressures surged in May.

Statistics Canada said Monday that inflation jumped to 3.2 per cent last month, reaching its highest level since late 2023 and rising past the central bank's target band of one to three per cent.

The energy price spike from the war in Iran has been the primary driver of inflation over the past three months in Canada.

Macklem has said previously that the central bank will look through the initial bout of inflation tied to higher gas prices, but will act to make sure inflation doesn’t spread to other parts of the consumer basket and become entrenched.

May food inflation outpaces overall inflation as fruits and vegetables get pricier

Rising food prices continued to outpace headline inflation for the 16th straight month, Statistics Canada data showed, with no relief in sight for consumers as higher gas prices weigh on grocery bills.

Manitoba government unveils findings of grocery price study

On Monday, Finance Minister Adrien Sala unveiled a report and three new measures government is taking, including restoring a food basket tool to regularly measure the cost of food per region and introducing legislation to mandate unit pricing in grocery stores.