When the loonie started loosing ground against the US Dollar I was one of the first to tell my readers who would be impacted the most – YOU. Other were not far behind; the Huffington Post reported “Canadians can soon expect to pay a lot more for everyday items from t-shirts to toothpaste as the sinking loonie hits household goods prices hardest.” So where are we now?
Thinking of Spring Break?
More than 40 per cent of Canadians say they are less likely to travel this spring thanks to the falling loonie, a new study from BMO Insurance says. How are our Canadian airlines (who pay their employees in Canadian dollars) serving their customers? WestJet implemented a “system-wide” price hike of two per cent on all airfares back in early February. Air Canada and tour operators like Air Transat jumped on the increase shortly after.
Loblaw Cos. Ltd warned Thursday that prices on produce and meat items have begun to rise thanks to the loonie’s steep decline since late last year.“We expect to continue to pass some of these cost increases on [to shoppers],” said Sarah Davis CFO.
Savings of 30% – 50% on clothes, food and virtually any goods traded in US Dollars are still readily available to the savvy cross-border shopper. A falling loonie means only one thing in Canada – Retail Prices will increase as wholesalers, shippers and retailers pass on any increases to the consumer. And you can bet that if the loonie gets back to parity with the US dollar again we wont see these increases rolled back. We didn’t get any relief when we went up $.40 against the US dollar so why should we when we go up $.10.