Epistles of Thomas

August 19, 2009

Canada’s inflation rate continues to rise

Filed under: Uncategorized — Thomas @ 11:55
Tags: ,

The CBC has an inappropriately titled article today, “Canada’s inflation rate falls further,” in which they claim that Canada’s inflation rate fell to -0.9% last month. In other words they are claiming that we are experiencing deflation. However the truth is in the details, not the title. The price of gasoline has continued to be low after its insane levels last summer which has led to these artificial numbers which proclaim deflation. Regardless of this fall in gas prices, the price we pay for needed goods continues to remain stable or rise. The shocking numbers appear in the form of food prices:

May +6.4%
June +5.5%
July +5.0%

They cap this off with the comforting news, “Growth in food prices has been slowing since reaching a peak of 7.9 per cent in March 2009, due to the slowdown of price increases for fresh fruit and vegetables and meat.” In other words, we are paying less for things that we do not really need (gas) while paying far more for things we do need (food). This is strange considering that the price of food was supposedly rising due to higher gasoline prices which increased farming (esp. fertilizer) and transportation costs.

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