Yesterday was Consumer Price Index day at StatsCan, which means a new round of inflation data, and a new round of ridiculous shitposts from Erin O’Toole and Pierre Poilievre. In an effort to provide some perspective as to what is driving prices this month, let’s delve into the report, shall we?
Key drivers are:
- Food prices have been rising because of poor weather conditions in food-growing regions, which has impacted prices for things like fresh fruit, and supply chain disruptions impact those imports. Additionally, we had droughts in Canada this summer, and crop yields were down in the area of 35 percent, which is making it more expensive.
- Durable goods, primarily things like household appliances and vehicles, all of which are impacted by those supply chain disruptions, especially with the ongoing global shortage of semiconductor chips.
- Construction costs are higher because of higher building materials (demand outstrips supply), and home and mortgage insurance prices have been rising as a result of severe weather-related claims.
- Gasoline prices have moderated, which is again, a global supply and demand issue.
- Oh, hey—stronger demand for air travel is increasing the price of fares.
So yeah, I’m not seeing a lot in here that is either Justin Trudeau’s fault, or something that he, or any other future federal government could do anything about. I mean, other than wage and price controls (which didn’t actually work), so if we want to bring back “Zap, you’re frozen!” that remains an option. As well, prices have started to moderate. Month-over-month inflation was actually down 0.1 percent, which could be the signal that things are starting to turn a corner.
We may already be past the inflation peak; CPI inflation over the past 3 months has been falling since September. pic.twitter.com/XJZaRKqRD7
— Stephen Gordon (@stephenfgordon) January 20, 2022
Hilarious. What federal powers does he plan to employ to accomplish any of this? pic.twitter.com/vlS9JgScOL
— Dale Smith (@journo_dale) January 19, 2022
https://twitter.com/LindsayTedds/status/1483990594770800643