Rob is taking a much-deserved break this week. While he’s away, we’ve collected some of the top stories by our investing and personal finance writers on inflation and how to manage the rising cost of living. – James Cowan, Investing Editor
Bidding wars, cutthroat viewings and onerous applications: Stories of Canada’s red-hot rental market
“A few weeks ago, she arrived to a viewing with nearly 25 people waiting outside the place. When the crowd learned they’d be shown the apartment in small groups, some began fighting to get ahead. The others swapped war stories. One young woman carrying a laminated calling card said she’d been on the hunt for three months. By the time she arrived to one viewing, the woman said, the listing price had suddenly jumped by $300.”
The cost of dining out is soaring alongside inflation. Here’s how to keep your budget in check
“Aaron Yen is paying more than ever for his Vancouver restaurant meals this summer. “You could probably get White Spot burger pre-COVID for around $10 to $12,” said the 27-year-old. “Now it’s around $15 to $16.”
He is seeing changes at upscale eateries too. There are far more tasting menus – such as omakase, sushi prepared one piece at a time – which of course cost more than the average meal.
Mr. Yen estimates he’s spending $200 to $250 a week on eating out, up from a pre-pandemic level of $100 to $150.
Welcome to ‘hotel shrinkflation,’ where rates are high and perks may never return
“During a recent weekend stay at a Super 8 hotel in Ajax, Ont., for example, Tanya Leafloor of Ottawa said she paid $325 a night only to find there was no daily housekeeping, and the gym and the pool were both closed.
“I chose the hotel because I wanted to be able to use the hot tub,” said Ms. Leafloor, who accompanied her daughter to a lacrosse tournament and thought a warm plunge would help relieve sore muscles.
Food inflation may have peaked. But don’t expect prices to soon fall, say experts
“It’s hard to say when prices for meat or grain products will cool off, said Simon Somogyi, a business of food professor at Guelph University. Fortunately, some relief could soon be found in the produce department, as the domestic harvest reaches grocery shelves and Canadians rely less on imported fruits and vegetables.”
The good – and bad – news about inflation
“Investors should be careful what they wish for. Soaring inflation in 2021 was accompanied by surging stock prices. It’s entirely possible that fading inflation in 2022 will go hand in hand with falling stock prices.”
Stress Test podcast: Inflation is squeezing our finances. What can we do about it?
With the inflation rate higher than it’s been in decades, how concerned should you be? And what can you do to combat the rising costs? We hear from two millennials – a Torontonian hit by soaring food prices and a new homeowner in Calgary – to learn where Canadians are feeling the pinch and how they’re adapting.
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What we’ve been writing about
- Could removing best-before dates help reduce food inflation and waste?
- Is retirement possible for those who start saving and investing after 40?
- Nine strategies for using a First Home Savings Account
More Rob Carrick and money coverage
Subscribe to Stress Test on Apple podcasts or Spotify. For more money stories, follow me on Instagram and Twitter, and join the discussion on my Facebook page. Millennial readers, join our Gen Y Money Facebook group.
Even more coverage from Rob Carrick:
- 🎧 Catch up on Stress Test: Is the middle class dead for millennials and Gen Z? • Gas prices are soaring. Are electric vehicles an affordable solution? • Crypto is booming, but should you invest? • How are young Canadians dealing with soaring rents? • Inflation is squeezing our finances. What can we do about it? • Is a hot housing market squeezing Canadians out of their small towns?
- ✔️ The housing file: How bad is housing affordability? Even a crash won't help • Sell the family home to lock in profit and then rent? Better not • Why young adults can't afford houses: Hard work got you more in the past than it does now • Five reasons you should not buy a house till you're at least 30 • Now more than ever, owning a house is not a retirement plan
- 📈 Investing: The 2022 ETF buyer's guide: Best Canadian equity funds • The 2022 Globe and Mail digital broker ranking: Does the zero-commission revolution flip the script on who's best? • With bonds sinking, conservative investors are waking up to risks they never saw coming • A five-step plan for dealing with the sad fact that almost every investment is falling lately • The best financial advice in advance of retirement? Work on your marriage • One-year GICs are the best deal in town for safety seekers • What to do if the financial plan you paid thousands for disappoints
- 💰 Your money: Are you prepared for the pandemic wealth boom to blow up in our faces? • This hard-working 24-year-old is nailing it financially. But where's the happiness? • Who should and shouldn't worry about the wave of rate increases this year, and what every stressed-out borrower should do right now • Don't make this potentially costly assumption about the CPP Survivor's pension
Are you reading this newsletter on the web or did someone forward the e-mail version to you? If so, you can sign up for Carrick on Money here.
