A local financial advisor is warning that employment numbers suggest that the economy might be contracting faster than inflation levels indicate.

Larry Short of Short Financial, a branch of iA Private Wealth, was responding to the Bank of Canada’s latest cut in the key interest rate.

Inflation rose to 1.9 per cent in August, driven primarily by rising grocery prices.

Short told the Tim Powers Show that the unemployment rate is a concern.

“I think it was the key decision above everything else,” Short says of the decision to drop the interest rate. “7.1 per cent unemployment is the highest level we (Canada) have seen in unemployment since 2016 not including the COVID years. That alone said there’s a problem, and the economy is slowing faster than what inflation is indicating.”