Roundup: Demands to take action on transitory inflation

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Inflation was the word of the day again yesterday, as it was the monthly release of Statistics Canada’s Consumer Price Index, and lo, it was once again high – 4.7 percent, which it hasn’t been since February of 2003. But the factors behind it are largely global – energy demand versus supply on the market, the shortage of semiconductor chips that is driving up the cost of vehicles, and locally, labour shortages (much of it because of COVID) is driving up meat prices. Not that these factors matter much to Erin O’Toole.

Here’s the thing – there’s not a lot that the federal government can do about the causes of this current bout of inflation, which, let’s be clear, the Bank of Canada and the majority of analysts still believes is transitory given what’s driving it, so the last thing you want to do is overreact and create more problems in the economy. When it comes to food items, the rising costs of dairy are from supply management reflecting an increase in input costs; meat is being driven up by labour costs; other foods are impacted by droughts and supply chain issues. There’s very little that the federal government can actually do about this, not that it’s stopped O’Toole from demanding that something – anything – be done. But what is that anything? Price controls? Do we need to start practicing “Zap, you’re frozen!” again? Because it feels a lot like we’re heading back to that territory.

In the meantime, Kevin Carmichael puts the figures into context for what the Bank of Canada is likely to do about upcoming interest rate decisions. Mike Moffatt and Ken Boessenkool call on the Bank of Canada to give a clear explanation of what is happening with inflation, because otherwise the Bank will lose its credibility for allowing inflation to run hot when using their tools could do further economic damage if employed at this point. Heather Scoffield worries that the floods and washed-out roads and railways in BC will further drive inflation – though that fear may be somewhat misplaced, as the macroeconomic damage may be limited to a few days.

https://twitter.com/kevinmilligan/status/1461179942880694281

https://twitter.com/kevinmilligan/status/1461181382302973954

Good reads:

  • The federal government is pledging support for the flood victims in BC, and have deployed the Canadian Forces to assist where they can.
  • Justin Trudeau and several Cabinet ministers met with US Congressional leaders in Washington to press the importance of continental supply chains.
  • Mary Ng has opened up talks with the ASEAN trade bloc, in the hopes of further diversifying supply chains away from China.
  • An assessment by the Department of National Defence shows that the Canadian Forces overstated their progress on Deschamps Report implementation.
  • Here is a look at the status of the renovations in Centre Block.
  • The House of Commons’ vaccine mandate goes into effect on Monday, and anyone who hasn’t shown proof of vaccination will have their access passes deactivated.
  • During a caucus meeting, Erin O’Toole defended booting Senator Batters from caucus, but said nothing about Shannon Stubbs or Senator MacDonald.
  • O’Toole did tell MPs that if anyone else challenges his leadership that he will have them expelled from caucus (and lo, this is being leaked to the press).
  • With his leadership in trouble, O’Toole has once again enlisted the support of professional shitposter Jeff Ballingall to help him out. No, seriously.
  • The Ford government has gone over the heads of Ottawa city council and called a public inquiry into the gong show that is the city’s LRT system.
  • Manitoba premier Heather Sefanson says she’s dropping the province’s carbon price appeal and wants to collaborate on a system with the federal government.
  • Shannon Proudfood gives the clarion call to stop treating childcare as a boutique women’s issue, as it affects everyone in the workforce.
  • My Xtra column talks to new Status of Women minister Marci Ien, who also has responsibility for the LGBTQ2 Secretariat.

Odds and ends:

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One thought on “Roundup: Demands to take action on transitory inflation”

  1. The “semi-retired” (i.e. collecting a handsome pension but won’t go away) Don Martin of CTV claims that the worst of O’Toole’s problems are behind him, because the return of parliament will make Trudeau the main “target” (for his fellow media shills, that is). He also acknowledges that inflation is a global dilemma that can’t credibly be blamed on Trudeau, but that it’s smart politics to do so anyway (no doubt with plenty of help from his fellow media shills).

    I have my issues with LPC comms too, but how is it really possible for them to get their agenda out there when the MSM themselves are willingly doing PR for and lending advice to the CPC on how best to outright *lie*? The government wants to crack down on disinformation — how are they supposed to do that (and not be attacked as “dictatorial”) when the biggest source of disinfo is their own political opposition *and the so-called “free press” itself*?

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