The September inflation numbers were released yesterday morning, and they are still cooling, but not quite by as much as anticipated, in part because food price inflation continues to stay high. While the temptation to conclude that this is entirely the fault of the grocery oligopoly engaged in price gouging, and boy howdy are the NDP trying to make this a Thing, we know from the economic data that it’s not actually the case. And it doesn’t take too much digging to know what some of the drivers of this food price inflation really are:
- For cereal and bakery products, that’s because the drought on the Prairies destroyed 40 percent of crop yields last year
- The blight known as “coffee rust” is affecting those crops, and is in large part because of monoculture
- Drought has also taken out things like the chilis necessary for things like sriracha sauce, or the mustard crops used in condiments
- Fresh fruit and vegetables are, again, susceptible to droughts in places like California, or the hurricanes that struck Florida
- Fish and seafood are facing collapsing stocks, which again, drives up prices, and some harvesting seasons have been impacted by hurricanes
- Dairy and meat has seen higher input costs (again, drought taking out feed crops) and avian flu ravaging poultry flocks is also driving up prices
As you can see, climate change is a big driver for most of these. Our food production is very vulnerable to it, and that is causing a lot of these price increases, and we need to be aware of that and stop couching it euphemisms about “inclement weather” or the like.
Couple of charts from this morning’s CPI release, first on the drivers of inflation, month-over-month, and year-over-year.https://t.co/6aT6sZsPJr pic.twitter.com/ipfdubNU8T
— Dale Smith (@journo_dale) October 19, 2022
Climate change and monoculture crops are having a big impact on food production and prices. As much as people like to blame the grocery oligopoly, there are serious pressures facing food production globally, and that is costing us.
— Dale Smith (@journo_dale) October 19, 2022
"shows no sign of cooling"
Inflation is down for a fourth month in a row. Still high, at 6.9 per cent, but it was that's not just a sign of cooling, that's actual cooling. https://t.co/XNbOeG6SLO
— David Reevely (@davidreevely) October 19, 2022
Meanwhile, Chrystia Freeland has told her Cabinet colleagues that they need to keep their spending priorities in check, and if they want higher spending, they need to be prepared to find savings in their departments to pay for them. While we have seen that the government’s fiscal stance is already pretty tight, Freeland needs to manage expectations right now—if we do go into a recession, the government can’t keep up the same supports they did during the pandemic, and broad spending programmes could wind up fuelling inflation and undoing the work the Bank of Canada is doing to tame it. It’s unlikely to really blunt any of the attacks from the opposition, and Poilievre in particular because he’ll just make up more nonsense that sounds like economics but is just bullshit, and certain people will spoon it up and legacy media will both-sides it, but regardless, Freeland looks to be steering the Liberals back on a course toward the brand of fiscal prudence and away from trying to capture more of the left, but perhaps that’s because they have put a mark in that territory with things like childcare and know that there are voters at the centre that the Conservatives are abandoning that they would rather pick up instead. Either way, it’s an interesting move.
Ukraine Dispatch, Day 238:
As Russians continue to bomb power stations around the country, Ukrainians are facing rolling blackouts. President Volodymyr Zelenskyy called out the Iranians for accepting “blood money” for these drone. Meanwhile, Putin has declared martial law in the four occupied territories in Ukraine, giving his Russian regional governors emergency powers to enact new restrictions.
Following the major long-range strike salvo launched by Russia beginning on October 10, Moscow claimed that there was no need for more “massive strikes” against Ukraine, and it denied using Iranian-sourced UAVs in its attacks.
Based on our analysis:
2/6— Canadian Armed Forces (@CanadianForces) October 19, 2022
– There is clear evidence from both video and recovered debris that Russia is employing one-way-attack UAVs purchased from Iran. 4/6
— Canadian Armed Forces (@CanadianForces) October 19, 2022
Read more on countering disinformation with facts – Russian invasion of Ukraine: https://t.co/Gv5ZWiRoc8 6/6
— Canadian Armed Forces (@CanadianForces) October 19, 2022