The inflation data for May was released yesterday, and unsurprisingly, the headline number ran high because of gasoline prices, entirely because of the situation that Trump created with Iran and the Strait of Hormuz. Looking into the data, it’s quite clear that core measures—which strip out volatile food and fuel prices—is right on the Bank of Canada’s target at 2.1 and 2.0 percent (there are two different core measures the Bank of Canada tracks). And yes, food price inflation continues to run hot, and the data shows pretty clearly that it’s supply disruptions—things like tomatoes coming from Mexico, where they planted fewer crops because of US tariffs, and then that smaller crop was affected by weather conditions (read: climate change). Constrained supply means higher prices. This is basic supply-and-demand.
Before Poilievre lights his hair on fire about inflation hitting 3.2% last month, this is pretty much entirely on gasoline prices because of Iran. Core measures remain at 2.1% and 2.0%. And he's going to decry the price of food and blame "Liberal inflation" as opposed to the truth:
— Dale Smith (@journodale.bsky.social) 2026-06-22T13:30:56.569Z
Predictably, Pierre Poilievre came out and blamed “Liberal high taxes, waste, and deficits.” None of those have anything to do with inflation. Taxes (which the Liberals have cut consistently) are disinflationary. The size of the deficit has nothing to do with Trump’s foreign misadventures, or climate change affecting food-producing regions, and yet, Poilievre has a convenient target for everything. Who needs facts when you have a narrative, and a government who refuses to actually push back on any of this, and merely pats themselves on the back for OECD projections.
Just completely ignoring the relevant facts, because he has a narrative.
— Dale Smith (@journodale.bsky.social) 2026-06-22T18:21:00.215Z
My Latest:
- My Loonie Politics Quick Take takes issue with the Conservative private member’s bill to take the GST off of used cars, which is both bad policy and bad economics.
- For National Magazine, I delve into Friday’s Supreme Court of Canada decision that allows a failed candidate the opportunity to sue the province’s chief electoral officer.
- My (belated) weekend column on the government unnecessarily jamming complex bills through the Senate for no good reason at all.
- For National Magazine, I contributed to this look at the next Supreme Court of Canada justice, Glenn Joyal.
Ukraine Dispatch:
In the early morning hours, Russian air strikes hit Kyiv, as well as Sumy, Zaporizhzhia, and Kharkiv, injuring at least six. Ukraine hit a plant that produces missile electronics in Voronezh, as well as a satellite communications site near Moscow.
Noteworthy:
- Lina Diab may be a weak minister, but she is doing what Carney wants.
- Thomas Juneau evaluates the winners and losers in the Iran conflict, and why it’s less clear-cut than it may seem on the surface.
- Justin Ling remains mystified by Carney’s endorsement of Trump’s Iran deal.
- Susan Delacourt balks at Carney’s constant flattery of Trump.
The only thing this thread is missing is Charles Tupper trying to avoid handing over power and making a bunch of appointments after losing the election, and the GG refusing his advice, forcing Tupper to resign at that point.
— Dale Smith (@journodale.bsky.social) 2026-06-22T17:07:56.073Z
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