What the latest inflation data, FIFA drop, and AI chatbots have in common

Inflation hit 2.8% in April – but it’s all just a gas

The latest inflation numbers from Statistics Canada were released this Tuesday and oof – they showed the pace of price growth rose from 2.4% in March to 2.8% in April.

Usually, a hot print like that would have economist chins wagging about impending central bank rate hikes – but when we look under the hood, it’s not as dire as the headline number makes it out to be.

First – and this is no surprise – spiking gas prices are to blame for much of that increase. The energy category in the CPI basket of goods rose by a whopping 19.2%, compared to a much tamer 3.9% increase the month prior.

While part of this increase is due to the full removal of the consumer carbon levy on April 1 – without this in the equation, the baseline year-over-year effect rose – the war in Iran is by far the largest contributor. With the prolonged Strait of Hormuz closure greatly reducing global supply, oil prices have risen roughly 50% since the start of the war.

The good news – though small consolation for anyone filling up at the pump – is that soaring gas prices are an isolated event in an otherwise cool inflation report. Stripping them out of the equation would result in inflation of just 2% – actually a dip from 2.2% in March.

This is further bolstered by improvements within the core measures of inflation – the metrics that the BoC really cares about. Core inflation provides a clearer picture of how consumer prices are trending by stripping out extreme swings – such as we’re seeing right now with gas prices. The CPI Trim – which cuts out the top and bottom 20% weighted price variations in the CPI basket – fell from 2.2% in March to 2% in April, while the CPI Median fell by the same degree, down from 2.3% to 2.1%.

This helps buy the BoC some time before it needs to take action with higher rates. Those central bank policy makers have already stated that they’re willing to “look through” the impact of higher gas prices on the headline number – as long as that doesn’t start to seep out and infiltrate other spending categories. What does this mean for you? Stable variable mortgage rates – for now – as well as little movement among rates for HISAs, GICs. And, of course, a higher gas line item in your household budget.

Want to learn more about the April inflation report? We break it all down by category in our monthly Consumer Price Index roundup.

Would you let an AI chatbot book your flight?

With AI becoming more ingrained in our daily lives, savvy travellers know it can take the pain out of planning a trip; just a few prompts into Claude or ChatGPT can yield full itineraries based on your destination, complete with restaurant recommendations, hotel and flight pricing, and even off-the-beaten path recommendations.

But today, travellers are getting even more comfortable with letting AI take over their vacation planning – in fact, 33% of travelers would allow the tech to book travel on their behalf, spending up to $1,000without their approval. 

This is according to the latest MasterCard Travel Trendline report, based on a survey of more than 15,000 respondents, conducted in partnership with The Harris Poll.

The findings show that as fuel costs have considerably pushed up the cost of flights, travellers are increasingly trying to stretch their budgets – and are happy to let AI optimize their planning.

Meanwhile, Canadian travellers remain hesitant about vacationing south of the border. New data out from Desjardins shows that the number of Canadians returning from trips to the US continued to drop in March, down 6.4% year over year, marking the fifteenth consecutive decrease. Desjardins points to strong domestic travel intentions, with Canada expected to keep a larger share of tourism within its borders – though major global events, such as the FIFA World Cup – are expected to boost inbound and domestic travel.

Are you planning to fly this summer? Don’t let airline fuel price increases and fuel shortages derail your travel plans. Ratehub Insurance writer Alyssa Prizzon shares what you need to know about what your travel insurance will – and won’t – cover here: Will travel insurance cover trip disruptions due to fuel shortages? You can also find a great roundup of credit cards with built-in travel insurance in our ranking of the best travel credit cards in Canada.

Pricey FIFA merch have fans crying foul

Speaking of the World Cup, Canadian soccer fans (sorry, football, for you purists) haven’t been pleased with the sky-high ticket pricing. Most recently a new merch drop will squeeze sports fans’ wallets even further – and may even have some fans kicking turf. 

Last Thursday, FIFA came out with several new limited-edition World Cup host city jerseys. Toronto and Vancouver aren’t yet part of the lineup – the drop included New York / New Jersey, Kansas City, Seattle, and Boston – and perhaps that’s for the best.

Not only are fans not loving the cityscape-inspired designs, but they’re even less enthused about the price tag – $375USD or roughly $517CAD.

On top of rising travel expenses for the FIFA games, it’s costing more than ever to show your team pride. Let’s hope the Canadian iterations have a friendlier price tag, eh?

We hope you enjoyed this inaugural issue of Your Bottom Line – a weekly roundup of money topics that’ll impact your wallet. Have a question or a topic you’d like us to dig into? Tell us in the comments!