Pumped up

Good afternoon, everyone. ICYMI, The Peak launched the Canadian Salary Index last week. It lets you explore real compensation data supplied by Canadians, anonymized, and broken out by industry, job level, region, function, and more. Might come in handy if you’re negotiating your salary or a new job offer — or are just a bit nosy about what other people in your field are getting paid!

In today’s newsletter:

— Leah Golob

Inflation in Canada rises to three per cent. July’s annual inflation rate came in higher than expected after falling to 2.8 per cent in June, according to Statistics Canada. While cooling energy prices helped temper inflation in June, renewed conflict in the Middle East sent global oil prices higher again in July. Higher jet fuel prices contributed to a 12 per cent rise in the cost of airfares last month, up from 9.6 per cent in June. There was some relief at the grocery store, however, as food inflation cooled to 3.1 per cent from 3.9 per cent the month prior. The figures are the Bank of Canada’s final glimpse at inflation before its next interest rate decision on Sept. 2.

Young homeowners are getting squeezed by mortgage renewals. Among Canadians aged 18 to 34, 56 per cent say they’re devoting anywhere from half to nearly three-quarters of their monthly household budget to their mortgages. And 90 per cent of those who renewed their loans say they’re paying higher interest rates, according to a new survey by Rates.ca. Many of those renewing mortgages right now are coming off dirt-cheap fixed interest rates from five years ago. The pain isn’t limited to younger homeowners. Among all Canadians who have renewed since January 2025, 82 per cent are now paying a different rate, with most increases ranging from two per cent to 4.99 per cent. 

The breakdown of CUSMA could cost Canada 102,000 jobs. But Canada wouldn’t be the only country to suffer. According to a new report by Oxford Economics, the U.S. is also projected to lose 214,000 jobs if CUSMA were to end. The report also estimates the breakdown could cost the U.S. economy US$1.04 trillion in GDP and the Canadian economy $271 billion by 2035. In July, the U.S. declined to renew the trade deal in its current form. However, CUSMA isn't dead just yet — it doesn’t expire until 2036. Meanwhile, the U.S. has threatened an Aug. 19 deadline for new 50 per cent tariffs on a range of Canadian products.

Reddit gets an upvote from investors. Shares climbed more than 15 per cent in early trading Friday after S&P Dow Jones Indices announced the social media platform would join the S&P 500 when markets open Aug. 18. The self-proclaimed “heart of the internet” will replace AvalonBay Communities. Despite Friday’s rally, Reddit’s stock is still down more than 31 per cent this year and more than 42 per cent from its all-time high in September 2025. One analyst says Reddit’s data is becoming increasingly valuable for training AI models, which could boost the stock in 2027. For brands, the AI revolution has changed Reddit from “an afterthought” to the “social media site de jour.” You have to give its users some credit, though — “many remain as inhospitable as ever,” The Wall Street Journal reports. 

Nearly 20 per cent of LinkedIn users are giving their old jobs a modern makeover. A working paper calls these revisions “time-travel” edits because they reflect changing ideas about which skills employers value. Some users have removed DEI-related language as the Trump administration targets those initiatives, while others are adding AI keywords to appear more hireable. In some cases, that means “blatantly adding responsibilities that didn’t exist” when they actually held the job, according to one of the paper’s authors. The practice is particularly common among those under 30, 38 per cent of whom have made these kinds of edits. 

We talk to D'Arcy McDonald, Group Head, Product at Interac, about how money moves in Canada, what Interac’s role in that system is, and how he is working to fend off competition from digital-first upstarts.

What happens when I send an Interac e-Transfer to a friend?

Interac sits at the centre of how money moves in Canada. When you send an Interac e-Transfer, you're not emailing money. You're sending a message that tells your financial institution and your friend's financial institution to move the funds between them. Interac connects nearly 300 banks and credit unions, so sending money by Interac e-Transfer works whether you're both at the same financial institution or not, 24/7. Your friend is identified by an email or phone number, the two financial institutions talk to each other over our network, and the money moves directly between them.

How are you thinking about digital wallets and mobile payments? Most people below a certain age expect to pay for almost anything, anywhere, with their phone. How does Interac and your strategy fit into that?

You're right; the phone is the new wallet for just about everyone. With our digital wallet, Konek, we started from what Canadians told us they wanted, which was to pay straight from their bank account and keep their information private and secure. Konek is the only digital wallet in Canada where you can pay online at participating merchants with your eligible credit or debit card or directly from your chequing or savings account, offering customers more ways to pay than any other payment solution. You set it up once through your participating bank, use a passkey, and after that it's about one click to pay. Look for Konek at participating online Canadian checkouts.

How do you expect Canadians' experience with Interac will be different two or three years from now? What are the biggest priorities on your roadmap?

First, I think you'll see Konek in a lot more places. It's early today, but the goal is to expand beyond the current checkout solution to deliver more features. Second, we’ll continue to enhance the Interac e-Transfer service with new capabilities. A good example of that is Interac e-Transfer Cards. These are digital greeting cards that let people add a personal touch when sending money for birthdays, weddings or other milestones, transforming everyday transactions into moments of connection. Through all of it, the constant is trust. My job is to help make sure that as Interac does more, it continues to be the trusted option Canadians reach for without a second thought. And that it stays Canadian.

Read the full Q&A on our website.