According to the latest numbers,
Canada’s inflation rate heats up but remains lowCanada’s inflation rate rose to 0.7 per cent in May, but remains well below the level that the Bank of Canada and other policymakers like to see …
Inflation in the Great White North is barely one percent per year, or you may say prices have not changed that much, certainly nothing like 10% for the decade or so. Not even close … ?
Canada’s inflation rises to 0.7% in May, falling below expectations
The annual inflation rate rose slightly last month, but remained tame at 0.7 per cent, which was below analysts’ already modest expectations.
Statistics Canada reported Friday that May’s higher natural gas prices — which had the biggest 12-month increase in more than four years — contributed to inflation, but that was partly offset by another drop in gasoline prices.
“Overall, today’s inflation report showed that consumer prices continue to face little upward pressure,” TD economist Diana Petramala wrote in a commentary.
“Food and shelter costs contributed the most to Canadian inflation in May (they are the category consumers spend the most on), but were still only up 1.3 per cent from year ago levels.”
Petramala noted that higher natural gas prices, which were up 15.4 per cent in May compared with a year earlier, added to the cost of shelter. Rent and property taxes also rose, but mortgage interest costs fell 4.1 per cent.
Statistics Canada said May saw the largest year-over-year increase for natural gas prices since December 2008. Alberta had the biggest jump, but the increases were seen across the country, the agency said.
Food prices rose 1.3 per cent year-over-year in May, after increasing 1.5 per cent in April.
“Compared with May 2012, consumers paid more for food purchased from stores, notably fresh vegetables (up 5.8 per cent) and bakery products (up 3.9 per cent),” Statistics Canada reported. “Prices for fresh fruit and meat also rose in the 12 months to May, although at a slower rate than in April.”
The cost of alcoholic beverages and tobacco products advanced 2.5 per cent in May, led by higher prices for cigarettes in most provinces.
Offsetting these increases, transportation prices fell 0.5 per cent from May 2012 — a smaller drop than the year-to-year decline of 2.1 per cent in April. The transportation index was largely affected by lower gasoline prices.
What ? There is no inflation for Gas prices ?
For the record, I paid just about $0.50 a lire one decade ago. Today, I pay something like $1.30 for the same thing. And this is supposed to be a “Negative Inflation” ?
The Bank of Canada’s core index rose 1.1 per cent in the 12 months to May. That matched the increase in April and was also lower than expected. The core index excludes certain highly variable prices, including fruit, vegetables, mortgage interest, natural gas, fuel oil and gasoline.
The central bank aims for core inflation to be about 2.0 per cent over the long term, with a target range of between 1.0 and 3.0 per cent annual inflation.
Economists had predicted an overall annual rate of 0.9 per cent, with core inflation at 1.2 per cent.
TD Economics said Friday it doesn’t expect the inflation rate to hit 2.0 per cent until 2015. It also said the Bank of Canada will likely keep its key lending rates unchanged until the end of next year.
Slower consumer spending, weaker global growth and increased competition among retailers has put a lid on Canadian price increases, Petramala wrote in the TD commentary.
“Note that while inflation has been unusually weak in recent months (6 month moving average is 1.2 per cent year-over-year), the Bank of Canada’s core measure of inflation has remained under its 2.0 per cent target since 2007,” she said.
“Looking forward, a weaker Canadian dollar and improving economic momentum will likely lead to a slight pick-up in inflation in the months ahead. Still, a moderate growth environment, in combination with cooling home prices and a constrained consumer will likely continue to keep a lid on inflation.”
Meanwhile, Statistics Canada said retail sales edged up 0.1 per cent to $39.5 billion in April, which was weaker than an expected 0.2 per cent, following flat sales in March.
The federal agency said stronger sales at motor vehicle and parts dealers were offset by weaker sales at gasoline stations.
Peasant with eyes
These numbers are totally meaningless. They are smoke and mirrors to fool the peasants while the rich keep filling their pockets and hiding the loot they steal from the poorest. The real inflation is probably around 20%!!!! Maybe there should be 2 inflation rates, one for the rich and one for the poor!!!!
What’s that smell
I agree 100% with Joan, she is correct. The real inflation rate is higher and is being suppressed. Inflation is the real household budget killer, that’s why politicians and public servants get indexed for inflation paycheques. The average Joe just buys less and pays more for everything.
Do not forget the old trick how to change the facts. When % should be used calculate numbers and do all in reverse to deliver desired results. This crooks are all the same and manipulate the masses whom are gullible.
Lets recap. My gas costs have gone up, my hydro bill has gone up, my food bill has gone up, my taxes have gone up..yet inflation is only .7 One wonders what criteria they use to calculate inflation…
fed up with crooks.
Deceit and more of the same from this bunch of crooked “Harper Government”. Trademark of Harper is to lie and it is spread right across the Nation. When corruption is exposed leave the country for a family vacation or see a new boyfriend as Bard did just now. Do not expect miracles you have to make the change and get our country back!.
I agree bcottawa. One way companies try to sneak in price increases is by making the contents smaller but charging the same price as they did for the bigger quantity. Found this with dog food recently. The bags used to be 18kg and now they are down to 14kg but the price I was paying for the big bag is now the price I pay for the smaller bag. I just wish someone in the government could knock their heads together to come up with the real inflation. Because we all know that what figures the government throws out are totally out of whack.
When a product goes from $2.69 to $3.19 last time I checked that was significantly more than 3 or 4 percent, perhaps they need to buy a new calculator.
I was put on Provincial disability in 2005. I got 988 a month. I pay $236 more for rent now, far more for medications and food is way beyond my means. Good food? It’s all pasta and pork now. HBP and Hi C and all, the poor mans diet. Now they have a new mandate and guess who has a sheaf of demand letters to keep my check? You can bet I’m not the only one. Like the wheel chair fee for seniors. Go after the lowest of the low and while your at it give your staff big raises. Just to rub it in the peasants faces. Thanks,BC voters. From the rest of us. Oh, I still get that 988 a month. When welfare went from $500 to 655, the disabled were getting too much money already. Everyone was either raised, stagnant or cut off for one or two years. No address? $225.
I wish the government would come out with the real inflation rate. The way they calculate it does not reflect true inflation. If I look at my pension for the last 20 years, it has gone up 30% which is rated to the rate of inflation according to the government. We all know that costs over the last 20 years have probably gone up 100% or more. So the way that inflation is calculated by the government does not come anywhere close to the true cost of rising prices. 20 years ago, I paid about $35 per month for power. It now averages $150. Insurance for my house was $300 per year and now it is $1200. And the cost of food has risen much more than 30% as well.
You can take these economists and change their names to Physics. They all have the same credibility.