Roundup: The inflation stats and what’s behind them

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Rounding out the big economic week was the Consumer Price Index report yesterday (made all the more difficult because Statistics Canada’s website is largely offline as they seal the cyber-vulnerability identified on Friday). The top line figure is that inflation remains at 4.7 percent for a second month in a row, meaning that it hasn’t accelerated into the much higher territory that places like the US are sitting at, and several of the price indicators were flat, which could mean that some prices are starting to stabilise. But it’s still early days, though when you drill down into the numbers, there are really three things that are driving inflation: gasoline, housing costs, and meat.

https://twitter.com/MikePMoffatt/status/1471125492568838152

To be clear, as noted by StatsCan:

  • Oil production continues to remain below pre-pandemic levels though global demand has increased
  • Prices for fresh or frozen beef increased 15.4% year over year in November. Poor crop yields resulting from unfavourable weather conditions have made it more expensive for farmers to feed their livestock, in turn raising prices for consumers

https://twitter.com/stephen_tapp/status/1471120984702922757

So what is the takeaway here? That these are issues that the federal government has very little control over, and that the Bank of Canada raising interest rates won’t tackle either. And yet, we keep hearing demands for “concrete action” from the federal government on this, as though they could wave a want to fix it. Or if not a magic wand, then wage and price controls? Do we need to bring “Zap, you’re frozen!” out of retirement?

Good reads:

  • The government is warning against non-essential travel over the holidays as omicron is now spreading, and Canadians could be trapped abroad.
  • The government plans to set up a $1 billion fund early in the New Year to help provinces ban handguns, and possibly municipalities in reluctant provinces.
  • The government has tabled their bill to implement a digital services tax in 2024 if the OECD minimum global tax proposal fails—but would be retroactive to 2022.
  • Opposition immigration critics are unconvinced that the $85 million commitment to tackle backlogs will be successful.
  • More MPs of all stripes and mayors around the country want some kind of federal intervention around Bill 21—but won’t say what non-existent lever should be used.
  • The Federal Court of Appeal defended solicitor-client privilege in overturning part of a decision that said CSIS failed in their duty of candour to obtain warrants.
  • Canadian Blood Services has submitted their request to Health Canada’s regulatory branch about changing blood donation screening rules to be more inclusive.
  • Liberal and NDP MPs have been told not to travel over the holidays, but the Conservatives are under no such restrictions.
  • The Conservatives believe up to 13 longshot ridings were targeted by foreign interference in the last election (but aren’t blaming the loss on that interference).
  • The Northwest Territories has now signed on to the federal childcare plan, leaving just Ontario and Nunavut left to sign on (and Nunavut sounds close).
  • Kevin Carmichael reads the signs from the November inflation data.
  • Andrew Potter reflects on the nature of the Charter of Rights and Freedoms, and the Notwithstanding Clause, and why it was a ticking time bomb destined to go off.
  • Althia Raj notes Brampton Mayor Patrick Brown trying to assert leadership on the opposition to Bill 21 (but neglects to mention there are no available federal levers).
  • Justin Ling enumerates the continued failures from all governments on managing the pandemic in anything resembling an effective manner.
  • In part two of her year-ender interview with Trudeau, Susan Delacourt hears about why the casual cynicism of the left bothers him more than far-right extremists.
  • Colby Cosh feels the frustration about the lack of clarity as why there are two Cabinet committees on the environment with no discernible difference.

Odds and ends:

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One thought on “Roundup: The inflation stats and what’s behind them”

  1. Sounds like one of the culprits is the one thing Conservatives *don’t* want to do anything about: climate change. “Zap, you’re frozen” really means hell will freeze over before they acknowledge the planet is on fire.

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