Thursday, August 21, 2008

Inflation

Well for anyone (except apparently economists) it really shouldn’t come as a surprise that inflation in Canada is on the rise. The inflation rate in Canada is now sitting at approximately 3.4% versus 3.1% during the same period last year. Although 3.4% is quite manageable for most households it is the largest increase we’ve seen in the last five years. Here are the main culprits behind the rise:

-gasoline up 28.6%
-natural gas up 25%
-food (avg) up 4.3%
-bakery products up 13.2%
-mortgage costs up 8.3%

Note: Although our inflation is rising we are still a full 2 points lower than our U.S neighbours.

289 comments:

1 – 200 of 289   Newer›   Newest»
Anonymous said...

Gasoline, natural gas, food, mortgages up between 4.3 and 28.6%, yet inflation has only risen 0.3%? I call shenanigans.

Alisa said...

Everything is on the rise you really have to have the time and patience to shop for bargains these days.

Be well.

Plamen said...

I do not think it will go down soon as the winter is approaching and I'm not sure that the fun with the gas prices is over yet.

Jill Stewart said...

Yes but there are some more things. As West Toronto realtor I am especially concerned about market cooling - moderate price drop can help many homebuyers, on the other hand, nobody wants situation like in the USA...
But we should realise rising prices of commodities are not so tragic for Canada - our country is really rich for resources! It's just a matter of time. Everybody knows the news about oil sands...
Jill

The Hoss said...

Yes, with many the many price increases it is necessary to find innovative ways to decrease spending. For example the wife and I have reduced our automobile gas consumption by 50% by consolidation and reducing vehicle use.

cannedguds said...

This fear of rising food costs, fuel price increase and inflation in general is getting to be a fact today! In Asia, lots of countries are suffering from increasing oil prices. The Philippines, for one, has already experienced the jack up of prices more than 20 times already! Last year, you can buy a liter of gasoline for only around 35 pesos. Now, it's around 65! everybody needs to economize. I, for one, always use personal checks so now, I buy personal checks online and not from my bank anymore!

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TheRat said...

I think this is a good article.

Regardless of what economists, analysts, or daily business news anchor say, I use the grocery store and transportation costs to get a feel for inflation. You dont have to go too far to see the rise in prices of bread, flour, rice and gas and oil.
Nuff said - Good post
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Time to buy real estate Jill? Yeah right! More like time to go back to school and study for a career change. You know, maybe something more honest that you can't graduate from in 5 weeks and give out advice to people about their entire life savings, when you (and the vast majority of realtors) so clueless about the economy.

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RBC Vice President, Halifax Region, Tammy Holland (902)421-8112 mail to:tammy.holland@rbc.com
RBC Senior Manager, Media & Public Relations, Beja Rodeck (416)974-5506 mail to:beja.rodeck@rbc.com
RBC Ombudsman, Wendy Knight, Toronto, Ontario 1-800-769-2542 mail to:ombudsman@rbc.com
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Loan Modification said...

it is not only Canada that experience this worldwide phenomenon.... most of Europe, the Americas and in Asia....

we really have to act swiftly to overcome this crisis

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Modify Loans said...

well Everything is on the rise and that is the cause of our economic crisis...

Mortgages Home Loans said...

The mortgage is the best solution to control inflation.....

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Affacturage said...

Let's face it: despite many people's protestations to the contrary, too many folks have an automatic trust of government. When there is a problem, many of us don't like to think of government as the problem but as the solution. Add to that the near phobia that many have about economics as business and what do we get? Pretty much what we have now: a government going billions of dollars IN debt in attempts to get the economy OUT of debt, We get a government doing such idiotic things as bailing out companies for whom bankruptcy is imminent and buying up banks.

Affacturage said...

If this market driven interest rate is manipulated by increasing the money supply (money being used to measure wealth), investors and consumers are fooled into thinking that, a) Investors can make the investments and b) Consumers can keep on consuming. This creates a dislocation of consumption versus investment or savings, ending up in resources being gobbled up faster than if the investments were not made or the consumption delayed. This is the boom-bust cycle

Senan said...

Well, perhaps it's better then the spectre of deflation. Over here in Europe (and particularly Ireland), we've seen massive drops in personal net worths. The sooner we get back to normality the better.

Senan said...

Dallas Federal Reserve President Richard Fisher has come out today and suggested that deflation is still a bigger threat than inflation at the moment.

Mama-Zen said...

I think we should expect it to get worse next year (at least). If you owe money, this should be your no1 priority. If you have money... try not to spend it on unessential stuff!

Best to all of us...

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