Price hikes coming as Ambassador Bridge blockades add to inflation pressures
Global News
Disruptions to the flow of goods such as fresh food across the Ambassador Bridge could see prices at the grocery store rise in the days to come, experts predict.
Blockades at the Ambassador Bridge will only turn up the heat on already soaring inflation levels in the days ahead, economists predict, putting further pressure on the Bank of Canada to act on interest rates next month.
Friday marks the fifth day of blockades at the Ambassador Bridge, the busiest land border crossing between Canada and the United States. The protests in solidarity with the so-called “Freedom Convoy” have pushed Ontario Premier Doug Ford to declare a statement of emergency as automotive manufacturers reduce or cancel shifts and demonstrations in Ottawa hit the two-week mark.
The southern Ontario blockades hit a critical port for Canada-U.S. trade, says Ambarish Chandra, associate professor of economics at the University of Toronto.
Two-thirds of trade between Canada and the U.S. takes place over the shared massive land border, with as much as 30 per cent of that volume crossing the Ambassador Bridge in particular, representing $400-million worth of goods per day, he says.
While automotive parts and other consumer goods rely heavily on the Ambassador Bridge, fresh food, such as agricultural imports from Florida, is a critical portion of that trade.
“The Ambassador Bridge closing is going to have an impact on fresh food pretty fast,” Chandra tells Global News.
Canada is already facing a 30-year-high in annual inflation, according to the latest Consumer Price Index results. It’s even higher south of the border, hitting 7.5 per cent last month.
Supply chain shortages — cited as a key cause of ongoing inflation — will only be made worse amid the blockades, Chandra explains.
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