2023-10-12 00:46:50
The conflict between Israel and Hamas will have consequences on the wallets of Quebecers, assures an economic expert.
“As soon as the financial markets opened this week, the price of oil increased by $5 per barrel. We saw a lot of raw materials increase,” mentions Simon Brière, market strategist at RJ O’Brien.
In addition to the instability of financial markets due to armed conflicts in Ukraine and Israel, the American dollar is gaining value at the expense of the Canadian currency.
“The more our dollar loses value [en le comparant au dollar américain], the lower our purchasing power. I must also add the factor of transportation. We see that oil is increasing, and so is diesel. Expenses related to trucker salaries are increasing. Everything will cost more, so we are not out of the woods,” he explains.
As a result, this conflict might mean that the objective of having average inflation at 2% will be very difficult to achieve in the next year despite high interest rates.
“We see that it is tending to decrease, but what remains to be done to reduce inflation from 4% to 2% is going to be extremely difficult,” he said.
See Simon Brière’s explanations in the video above.
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