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Email this12:49 pm
October 29, 2017
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CPI Dropped from 133.5 to 133.4, month on month. Year over year inflation is 2.0%.
We need much higher inflation if we want rate hikes. We will see what January reports, but I’m thinking March will be a rate hold again.
12:06 am
October 21, 2013
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Meanwhile, back at the ranch,
CPP pension payments go up 2.3%, whereas CPP contributions (excluding the increase due to a new rate structure) go up 2.68% in 2019, both due to CPI.
https://www.canada.ca/en/services/benefits/publicpensions/cpp/old-age-security/cpp-price.html
and
http://www.knowledgebureau.com.....s-for-2019
Yes, I know they use different formulas, but I question whether they should. Seems like sleight of hand, at least on the surface of things. it would be interesting to know if it always or usually works out in favour of greater contributions and less received pension.
7:28 am
February 20, 2018
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they move goal posts to suit whatever mr bubble mark carney was the master at it
8:41 am
October 29, 2017
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The CPP increases will slow the economy, delaying interest rate hikes.
I figure the CPP increase isn’t for future benefit increases, as the smoke screen tells us. It’s for covering the demographic transition cost deficit.
6:18 pm
April 6, 2013
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Loonie said
CPP pension payments go up 2.3%, whereas CPP contributions (excluding the increase due to a new rate structure) go up 2.68% in 2019, both due to CPI.
https://www.canada.ca/en/services/benefits/publicpensions/cpp/old-age-security/cpp-price.html
and
http://www.knowledgebureau.com.....s-for-2019Yes, I know they use different formulas, but I question whether they should. Seems like sleight of hand, at least on the surface of things. it would be interesting to know if it always or usually works out in favour of greater contributions and less received pension.
It's not the CPP contributions that are going up by an additional 2.68%. What is going up by 2.68% is the maximum CPP pensionable earnings, from $55,900 to $57,400. According to CRA announces maximum pensionable earnings for 2019, that maximum is based on changes in wages and salaries, not on changes in CPI:
The maximum pensionable earnings under the Canada Pension Plan (CPP) for 2019 will be $57,400—up from $55,900 in 2018. The new ceiling was calculated according to a CPP legislated formula that takes into account the growth in average weekly wages and salaries in Canada.
Contributors who earn more than $57,400 in 2019 are not permitted to make additional contributions to the CPP.
The basic exemption amount for 2019 remains $3,500. …
Those who will be contributing more (who earn more than $55,900 per year) because of the higher CPP pensionable earnings limit will receive more CPP later. More of their earnings is now pensionable under CPP.
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