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Email this7:31 am
October 21, 2013
Offline7:42 am
October 15, 2015
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Interesting that peoples argument that inflation would go down hasn’t happened yet as they said. I bought 2 litre milk at shoppers drug mart for 4.50 earlier this month. That seems harsh bu maybe it is always expensive there.
7:55 am
November 8, 2018
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Inflation at 5% is transitory, they say. It could go up to 10% soon is what they probably mean. We will learn to treasure old good times of low 5% inflation.
I can't recall where I read it, but it goes like this: an old man is saying "I saw a carton of eggs going for 1,000 today. For one thousand!!! I still remember times when you could buy a carton of eggs for just one hundred!"
8:27 am
April 6, 2013
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christinad said
Interesting that peoples argument that inflation would go down hasn’t happened yet as they said. I bought 2 litre milk at shoppers drug mart for 4.50 earlier this month. That seems harsh bu maybe it is always expensive there.
Milk at Shoppers Drug Mart is competitive. It is likely one of the loss leaders for drawing people into the stores.
I saw the recent price increase in milk. That's probably from the 8.4% increase in raw milk prices this year that was announced in November.
Inflation is not expected to go down until the middle of this year. The Consumer Price Index has been quite volatile the past few months.
8:44 am
August 10, 2018
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CPI is 5.1% as per Government supplied measure. What a joke. They purposely lie to protect Government payment outlays. Actual inflation is probably at least 3 times that. No wonder faith in Government is at an all time low.
8:50 am
September 11, 2013
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What is supposed to happen in/by the middle of this year to cause inflation rate to head south again?
9:18 am
April 6, 2013
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Supply chain issues are expected to ease.
This is from Bank of Canada maintains policy rate, removes exceptional forward guidance a few weeks ago:
CPI inflation remains well above the target range and core measures of inflation have edged up since October. Persistent supply constraints are feeding through to a broader range of goods prices and, combined with higher food and energy prices, are expected to keep CPI inflation close to 5% in the first half of 2022. As supply shortages diminish, inflation is expected to decline reasonably quickly to about 3% by the end of this year and then gradually ease towards the target over the projection period. Near-term inflation expectations have moved up, but longer-run expectations remain anchored on the 2% target. The Bank will use its monetary policy tools to ensure that higher near-term inflation expectations do not become embedded in ongoing inflation.
9:54 am
September 11, 2013
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That's what I figured they'd think, but they better get out in the real world and talk to my bike shop and sports goods shops guys who told me their suppliers told them to forget about much stock until at least 2023, and that was over a year ago when we thought we'd be out of this much sooner.
10:01 am
January 12, 2019
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.
BNN's take on this ➡ https://www.bnnbloomberg.ca/inflation-is-now-running-hot-in-80-of-canada-s-price-categories-1.1724393
We're getting very close to a 'Perfect Storm' ... hang on to your hats ❗
- Dean
" Live Long, Healthy ... And Prosper! "
10:41 am
February 27, 2018
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Let's look at Tim Hortons.
First they announce record sales and increased profits, during pandemic times. Tim Hortons just announced, their prices are going up. Capitalism at its finest.
All the grocery chains did the same. Record profits, jack up the prices. Opportunity to make more money.
Netflix, during covid their membership soared, so they increased their price.
If i complain to loudly, "The Dictator" might seize my assets and cancel my insurance.
11:08 am
October 27, 2013
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I tend to agree with Norman1's posts. I fully expect YOY inflation rates to roll over and start declining sometime in 2Q22 (Spring) as I have said before. Sometime in the Apr-June period and I expect it to also trend to 3% by year end. The transitory portion of inflation should have all been wrung out the system by then.
I find Ray Dalio's writings interesting, if not a bit sensationalist and hard to absorb sometimes, but I think the message is directionally correct for the USA and by association ourselves for the most part. His latest musings on inflation are here which suggest more persistent inflation than central bankers are likely thinking at this time. https://www.linkedin.com/pulse/where-we-big-cycle-money-credit-debt-economic-activity-ray-dalio/
11:28 am
September 11, 2013
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AltaRed, by "wrung out of the system", not sure I understand. How does that wringing- out happen? Do you mean the extra money printing will have stopped, i.e. we'll just be back to the regular non-pandemic money printing?
And I notice your Dalio excerpt re. inflation makes no mention of supply chain issues, so that would just be additional on top of the regular currency devaluation inflation, I guess.
Kidd, I think you're safe, it's cool to criticize corporate success (and don't forget, wages are way up too).
12:08 pm
October 27, 2013
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I am guessing Ray thinks supply chain issues are transitory (or minor) in the overall scheme of things. He's not a short term guy so his musings need to be taken in that context.
I feel most (not all) supply chain inflation will dissipate once productivity resumes in manufacturing, e.g. semi-conductors and auto assembly, and supply/logistics get sorted out,. e.g. trucking and marine container shortages. That is what I mean by "wrung out of the system". However, I do believe some of it will be sticky, such as 'buy American' policies which may 'prevent' maximum efficiencies (lowest cost).
12:17 pm
March 30, 2017
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AltaRed said
I am guessing Ray thinks supply chain issues are transitory (or minor) in the overall scheme of things. He's not a short term guy so his musings need to be taken in that context.I feel most (not all) supply chain inflation will dissipate once productivity resumes in manufacturing, e.g. semi-conductors and auto assembly, and supply/logistics get sorted out,. e.g. trucking and marine container shortages. That is what I mean by "wrung out of the system". However, I do believe some of it will be sticky, such as 'buy American' policies which may 'prevent' maximum efficiencies (lowest cost).
Supply chain issue will take 1-2 years or more to fix, not 6 months like the central banker's think. To think inflation eases by second half of 2022 is just wishful thinking, as naive as their claim of "inflation is transitory" 6 months ago.
1:09 pm
October 27, 2013
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Only time will tell. I can't get too excited by this actually, notwithstanding my smallish DB pension has no COLA adjustments. I mostly make up for it in asset inflation and nominal increases in investment income. Obviously, if inflation gets too far out of hand, it will actually strangle asset inflation due to excessively higher carrying costs (interest sensitive stocks, housing, etc.).
3:25 pm
October 15, 2015
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I was shocked at the high gas prices when i filled up my tank this weekend. I can't believe people have to fill up their tank regularly, I just drive occasionally.
3:50 pm
February 27, 2018
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Christinad.
The higher the pump price, your federal government believes, the cleaner your air will be. This April, the boy who wants to be king, will add more tax to your gas price, to prove his point.
Years ago, canada had a correlation with the price of oil. If Oil goes down, gas goes down. There was a ballpark 100 to 1 ratio. So, $100 per barrel of oil, meant $1 per litre.
When oil tanked, government's of canada saw the opportunity to sneak in more tax. In ontario doug ford wanted a sticker placed on each and every pump, so show the added tax.
Americans pay on average... 60 cents LESS in Canadian dollars, per litre. Link below.
https://www.gasbuddy.com/charts
We have world class free health care, and cleaner air than the Americans. Or so the boy king would have us believe.
4:02 pm
October 27, 2013
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christinad said
I was shocked at the high gas prices when i filled up my tank this weekend. I can't believe people have to fill up their tank regularly, I just drive occasionally.
They are definitely much higher than they used to be in recent times.
These are in USD/litre (couldn't find a decent CAD equivalent) but one can see on https://tradingeconomics.com/canada/gasoline-prices that if you pick either the 10 year or 25 year chart, 2022 appears to be still below 2014 on a nominal basis. Imagine if one charted this in 'real' terms, i.e. took the 2014 price and added CPI to it. And that is with carbon tax added in the price in the last year or two. Gasoline is a bargain and the oil companies are suffering relative to 2014.
The problem is people only remember the very low base prices of the past 6-7 years.
*1.17USD on the chart = $1.50 CAD which is close to the $1.60 I paid this morning.
4:06 pm
April 6, 2013
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Kidd said
… We have world class free health care, and cleaner air than the Americans. …
You have your facts mixed up.
We have free health care. The Americans have world class health care.
Ask some American friends how much the medical bills for a routine pregnancy is. It was around US$15,000 to US$20,000!
Ever see a US$10,000 bill for that MRI the next day? I have!
Many people here in Canada don't have a clue how much the health care system here saves them.
4:42 pm
September 7, 2018
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Norman1 said
Kidd said
… We have world class free health care, and cleaner air than the Americans. …You have your facts mixed up.
We have free health care. The Americans have world class health care.
Ask some American friends how much the medical bills for a routine pregnancy is. It was around US$15,000 to US$20,000!
Ever see a US$10,000 bill for that MRI the next day? I have!
Many people here in Canada don't have a clue how much the health care system here saves them.
You are correct US has world class health care. People come from around the world to the US for their specialists and hospitals etc. Medical bills may be costly in the US, however Canadians individual and business do pay much higher income taxes and sales taxes compared to US so it is not really free health care in Canada. We pay for it indirectly in our taxes.
Americans are able to purchase health insurance if not covered by employer plan, and the poor get free medicare.
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