You’ve heard this here before: Everything is so crazy expensive these days.

In May, Canada’s inflation rate was 7.7 per cent, the highest it's been since 1983. Bank of Canada Governor Tiff Macklem warned that the rate is expected to climb higher than eight per cent this week.

In response, Canada's central bank raised its benchmark interest rate last week by 100 basis points, or one percentage point, to 2.5 per cent — the biggest hike in more than two decades.

Today, CBC business writer Pete Evans explains the impacts this move could have on the debt levels of Canadians, the economy writ large, and the concern that a recession could be just around the corner.