Our old friend “unexpectedly” is back.

Canada’s economy unexpectedly contracted in the second quarter at an annualized rate of 0.2% and growth was most likely flat in July, data showed on Friday, a signal to the central bank ahead of its meeting next week that interest rates are high enough.

The second-quarter reading was far lower than the Bank of Canada’s (BoC’s) forecast for a 1.5% annualized GDP growth as well as the 1.2% gain expected by analysts.

The quarterly slowdown was largely due to declines in housing investment and smaller inventory accumulation as well as slower international exports and household spending, Statistics Canada said.

Anorexia Trudeausa;

Persistent inflation concerns continue to influence behaviours, with roughly nine in 10 Canadians reporting food is more expensive than it was three months ago, and more noticing the practice of “shrinkflation.”

Caddle conducted a representative survey of over 3,000 Canadians in July 2023.

It found that meat still dominates as the food category the public feels is the most expensive, though only 42% believed that this year, compared to 50% in a similar survey conducted in 2022. There has also been a drop in the amount of people who believe dairy (3%) and seafood (1%) have risen, though categories like fruit and bakery are still seen as more expensive than a year ago. […]

While food price spikes are abating in some areas and climbing in others, consumers are taking more note of “shrinkflation,” the practice of maintaining a product’s price, but reducing its size. In fact, 44% of consumers report “shrinkflation” among baked goods, compared with 39% in 2022.

“Shrinkflation” is not a new phenomenon, Charlebois says, but more buyers are taking note, especially in categories like meat, baked goods and dairy.

Related from @FoodProfessor – “If Statistics Canada is significantly underestimating our nation’s population, it implies that many of our food policies are, at best, founded on unreliable data.”