Canada

For the first time since 2019, Canadian inflation stayed within the central bank’s target range for a full year, a mark of achievement for policymakers ahead of a potential tariff war that threatens to derail their progress, Bloomberg News reported. The consumer price index ended 2024 with a second consecutive monthly deceleration, rising 1.8% on a yearly basis in December, down from 1.9% previously, Statistics Canada reported Tuesday. The median estimate in a Bloomberg survey of economists was for a 1.9% gain.

The Bank of Canada says the bar for using exceptional monetary policy tools like quantitative easing and extraordinary forward guidance “should remain very high,” after reviewing its response to the Covid-19 pandemic to inform how it reacts to future crises, Bloomberg News reported. In a suite of documents released Friday, the central bank offered a wide-ranging review of its handling of the economic shock brought on by the novel coronavirus in early 2020. The report comes as US President-elect Donald Trump threatens tariffs that would likely tip Canada into a recession if enacted.

As Christmas holiday bills arrive, nearly half of surveyed British Columbians are "teetering on the edge of financial insolvency," with 31 per cent saying they're already unable to pay their bills, TodayinBC.com reported. These figures appear in the latest MNP Consumer Debt Index, which finds a "sharp increase" of nine per cent to 46 per cent among British Columbians, who are less than $200 from not being able to pay their bills and debt payments each month. This increase wipes out the nine percent improvement from the last report.

The beverage maker linked to Canada’s deadly listeria outbreak in plant-based milks last summer has filed for protection from creditors as it attempts to restructure, according to documents filed by its licensed insolvency trustee, the Globe and Mail reported. Joriki Inc., which operated a production facility in Pickering, Ont., that produced certain types of plant-based milks recalled in July, is seeking protection to restructure under the Bankruptcy and Insolvency Act.

Canadian Prime Minister Justin Trudeau has announced his resignation, telling the nation that “internal battles” mean he “cannot be the best option” in the next election, the Associated Press reported. Trudeau said Monday he has asked the president of his Liberal Party to begin the process to select a new leader. He has faced rising discontent over his leadership, and the abrupt departure of his finance minister late last year signaled growing turmoil within his government. Parliament will be suspended until March 24. It had been due to resume Jan. 27.

Business bankruptcies across Canada have risen to their highest level in 15 years, Baystreet.ca reported. The latest data from the Canadian Association of Insolvency and Restructuring Professionals shows that 1,312 companies filed for bankruptcy during the third quarter of 2024, the highest level since the 2009 financial crisis. On a yearly basis, bankruptcy filings rose in every province except New Brunswick and Newfoundland during Q3 2024. In Ontario, bankruptcy filings rose 67% year-over-year in Q3, while bankruptcy filings in Quebec increased 40%.

Canadian manufacturing activity increased at the fastest pace in nearly two years in December as inventory accumulation by U.S. clients in anticipation of trade tariffs provided a measure of support for export sales, Reuters reported. The S&P Global Canada Manufacturing Purchasing Managers' Index (PMI) rose to 52.2 in December from 52.0 in November, its highest level since February 2023 and the fourth straight month above the 50.0 no-change mark. The average for the PMI in data going back to 2010 is 52.4. A reading above 50 indicates expansion in the sector. U.S.