Print

Email story

Comment

Letter to the editor

Prices don't reflect today's currency rates, experts say

By JIM FOX
Published June 17, 2007

Canadians have watched their dollar skyrocket to near parity with the U.S. greenback, but the change hasn't been reflected in the prices of some products.

Complaints are growing as Canadians still pay 20 percent to 40 percent more for such things as books, magazines and greeting cards. Cars and trucks are often 15 percent more in Canada than in the United States.

Five years ago, when Canada's dollar was near 60 cents U.S., prices of imported American goods, including fruits and vegetables and books and magazines, were increased to compensate for the dollar difference.

Now, prices haven't been adjusted to reflect the narrowing gap between the two currencies, said Douglas Porter of BMO Capital Markets.

Negatively, these higher prices are helping to boost the core inflation rate to 2.5 percent and threatening the need of the Bank of Canada to raise interest rates, he said.

The situation is a "ripoff, " said Bruce Cran of the Consumers' Association of Canada, which has surveyed consumer prices.

Everyone is invited

Activities to mark Canada Day, the country's birthday on July 1, are happening not just across Canada but in the United States, too.

This will be the second annual "Canada Day Across America" event, said Bernie Etzinger of the Canadian Embassy in Washington.

In its first year there were 130 U.S. events, ranging from small parties and backyard barbecues to those attracting hundreds of people.

It's part of the way to "show how proud we are of Canada and the friendship we enjoy with our American friends and neighbors, " he added.

The embassy produces a weekly electronic newsletter called Connect2Canada and wants people to register their events. The newsletter also lists the location of each activity, by state, at www.connect2canada.com/canadaday.

Also available are materials that will help with parties, including O Canada music files, recipes and Canada graphics for posters and T-shirts.

In brief

- The federal government has increased the travelers' exemption to $400 Canadian from $200 for returning Canadian residents who are out of the country for at least 48 hours. Called more convenient for travelers clearing customs, the increase will also reduce the amount of processing at the border. The dollar limits for the 24-hour and seven-day tax-free exemptions remain unchanged at $50 and $750, respectively.

- Quebec is moving ahead with a bill called Anastasia's Law, which imposes tougher controls on the use of firearms. The bill is so named in honor of Anastasia De Sousa, an 18-year-old student killed by a gunman at Montreal's Dawson College in September. The bill would restrict the possession of all firearms at educational institutions and child-care facilities in the province.

Facts and figures

Canada's dollar retreated slightly over the week to 93.86 cents U.S., down about one-half cent, while the U.S. dollar returns $1.0654 Canadian before bank exchange fees.

The Bank of Canada's key interest rate is steady at 4.25 percent while the prime lending rate is 6 percent.

Stock markets were higher Friday, with the Toronto Stock Exchange index at 14, 067 points and the Canadian Venture Exchange at 3, 184 points.

Lotto 6-49: (Wednesday) 2, 10, 19, 36, 40 and 48; bonus 18. (June 9) 10, 20, 25, 41, 44 and 46; bonus 6.

Regional briefs

- The "Yes Men" have struck again, this time at the Go Expo Energy conference in Calgary. Instead of learning about energy policies, delegates heard from two pranksters claiming to be from the National Petroleum Council. They spoke about "vivolium, " which they called a renewable energy source, and then produced two torchlike candles to honor a dead Exxon oil worker. The men have pulled similar pranks at corporate events to protest how the public is treated by business and government.

- Robert Ghiz, 33, took the oath of office to become Liberal premier of Prince Edward Island, 21 years after his late father, Joe Ghiz, did the same. Islanders voted for change on May 28 by electing the Liberals, ending 11 years of Conservative rule. First order of business was to enact a promise to cut gasoline taxes by 4.4 cents a liter, effective July 1.

- If re-elected in the fall, Ontario Premier Dalton McGuinty says his Liberals will spend $17.5-billion to improve rapid transit. The 12-year plan includes extending Toronto's subway, expanding GO Transit rail commuter service and installing two rapid transit lines across Hamilton.

Jim Fox can be reached at canadareport@hotmail.com.

[Last modified June 17, 2007, 00:36:12]