Canadian consumer prices fell 0.3% last month, the biggest monthly drop in two years. 

Central banks around the world have a tall task ahead of them: get the economy running not too hot, not too cold, but just right—or risk plunging the world into a historic recession.

That’s the message the World Bank is sending in a report documenting the risks presented by the most dramatic and widespread tightening of monetary policy since the 1980s (but no pressure, or anything). 

Why it matters: Inflation hurts, but a worldwide recession would be no picnic either—the World Bank estimates it would set the global economy back around 6 years, with GDP not reaching the pre-COVID 2024 forecast until the end of the decade.

Higher-than-expected US inflation numbers have cleared the runway for the Federal Reserve to deliver another big rate hike—a realization that has sent markets into shock. 

If you’re kicking yourself over a bad stock pick recently, we’re here to tell you that #1, who isn’t, and #2, even bonds—one of the safest (some would say boring) investments—is losing money this year, with a key index that tracks the asset dropping 16.8% since January.   

Canada’s unemployment rate is up for the first time in seven months, which means that high interest rates have (done what they do and) thrown cold water on the red hot labour market.

Speaking of the wealthy doing most of the spending, the yacht rental business is booming.

The federal government is planning to announce relief measures aimed at helping low-income Canadians beat back inflation pains. 

What happened: The measures are expected to temporarily double the GST tax credit, top-up the Canada Housing Benefit by $500, and start the rollout of a dental care program.

As global markets go haywire, US stocks are suddenly looking pretty appealing in comparison (disclaimer: they’re still looking pretty bad). 

In case you weren’t sitting with a bowl of popcorn and an ‘I ♥️ quantitative tightening’ foam finger ahead of the Bank of Canada (BoC) rate hike decision yesterday, here’s the lowdown.

Back-to-school shopping used to be fun, and then 30-year high inflation happened. 

Driving the news: According to a recent poll, one-third of Canadian parents are spending more on back to school than last year, and nearly all say inflation is impacting their spending.