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Is the Canadian inflation rate really back at 2.8% ? (lemmy.ca)

submitted 1 year ago by [email protected] to c/[email protected]

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As a foreigner who follows the Canadian news I saw on https://www.ctvnews.ca/business/economists-expect-rise-in-inflation-as-price-growth-fight-enters-new-phase-1.6517322 that the Canadian inflation rate is 2.8% which surprised me as in our country it is around 7%.

If so then how did Trudeau do it? How did he soak up all the money he printed during Covid?

Does that mean that housing and cost of living pressure has also been eased?

Would like to know your thoughts.

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[–] [email protected] 2 points 1 year ago (1 children)

StatsCan uses an odd assortment of consumer goods to track inflation, which doesn't really reflect what pressures consumers are facing in Canada, I'd hazard a guess it's likely closer to 5%.

Housing and cost of living issues are very much still at the forefront of most Canadians' mind, barring the wealthy. The federal govt has done nothing of note on either issue, and I'd posit that they're likely to get hit pretty hard from both sides come election season. I'm personally aghast that our federal govt is willing to accept such a huge leap of unhoused Canadians while those in power sit on their hands.

[–] [email protected] 0 points 1 year ago* (last edited 1 year ago)

StatsCan uses an odd assortment of consumer goods to track inflation, which doesn’t really reflect what pressures consumers are facing in Canada

Makes sense. Inflation only cares about the change in value of the dollar, not the sum total of the change in value of the dollar and the change in value of the good being purchased. It is decidedly not a cost of living index.

If, for the sake of illustration, the value of bacon is up 50¢ and the dollar has declined in value by 50¢, your cost to buy bacon is now up $1 – but inflation would only be interested in the 50¢ on the dollar side of the transaction. The increase in value of the bacon is irrelevant to dollar inflation.