The spectre of inflation eroding purchasing power and the value of our currency is rapidly moving from a theoretical problem to a reality in Canada.
For years we’ve been told that low interest rates would not be around forever and that eventually inflation would trigger higher interest rates to combat rising prices.
While it was talked about, it never happened — until a couple months ago, that is. Interest rates have risen twice in the past month with another hike likely to follow soon driving mortgage rates higher.
It is a situation that has captured the attention of those in the under-35 age group in particular.
A survey by TD Wealth noted that inflation is the number one financial concern of those under 35. The cost of living – which is closely linked to inflation – was right behind.
But older generations – who have lived through high inflation environments before – are less concerned. The comparison is 84 per cent for young people rating inflation as their primary concern and 54 per cent for older Canadians.
