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Airlines Slash Flights as Jet Fuel Costs Surge, Squeezing Travellers and Markets

  Airlines Slash Flights as Jet Fuel Costs Surge Canadian travellers are facing fewer flight options and higher fares as jet fuel prices spike to multi‑year highs , forcing Air Canada and Air Transat to cut capacity across key routes. The surge in fuel costs is tied directly to the ongoing Iran conflict , which has disrupted global oil flows and pushed energy markets into another period of volatility. Air Transat is reducing service to Europe and the Caribbean, while Air Canada is suspending several regional and international routes it now considers unprofitable. For consumers, this means higher ticket prices, more crowded flights, and fewer choices heading into the summer travel season . Impact on the Economy and Inflation Airlines passing fuel costs to passengers adds fresh pressure to Canada’s already‑stubborn inflation outlook. Travel inflation — which had been easing — is now expected to rise again, complicating the Bank of Canada’s path toward rate cuts. Higher travel costs a...
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Canada's Inflation Rate Declines to 1.8% in December Amid GST Tax Break

 

Canada's annual inflation rate fell to 1.8% in December 2024, according to Statistics Canada. This decrease is largely attributed to the federal government's temporary tax break on various goods and services, including food purchased from restaurants, alcohol, tobacco, and clothing.

The tax break, which was introduced mid-December, significantly contributed to the deceleration in inflation. Without this tax relief, the inflation rate would have risen to 2.3%. Grocery prices also saw a decline, falling to 1.9% from the previous month.

The Bank of Canada is now closely monitoring these developments as it prepares for its next interest rate decision. Analysts are speculating whether this consistent easing of inflation might prompt further rate cuts.

This report highlights the impact of fiscal policies on inflation and underscores the importance of government interventions in managing economic stability.




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