CHARLEBOIS: Rising interest rates and the silent hunger

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CHARLEBOIS: Rising interest rates and the silent hunger
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The Bank of Canada is once again contemplating an increase in its benchmark interest rate.

In essence, retailers are, at best, merely sustaining their food sales. Consumers may be visiting restaurants more often, perhaps, but we are all actively pursuing special offers, forsaking national brands, and gravitating towards more affordable stores.

For instance, the average monthly rent for a one-bedroom apartment is presently $1,828, according to Rentals.ca. This marks a 13.03% increase over a single year, amounting to an additional $238 per month. Homeowners and mortgage borrowers face an even direr situation. For those who acquired a $500,000 house last year, availing a 25-year mortgage with a 20% down payment, the monthly payments hovered around $1,700, subject to the prevailing interest rate. At present, these payments have surpassed $2,800 per month, constituting an approximate increment of $1,100 per month and nearly $13,000 annually.

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