Yesterday was Consumer Price Index day at StatsCan, which means a new round of inflation data, and a new round of ridiculous shitposts from Erin O’Toole and Pierre Poilievre. In an effort to provide some perspective as to what is driving prices this month, let’s delve into the report, shall we?

Key drivers are:

• Food prices have been rising because of poor weather conditions in food-growing regions, which has impacted prices for things like fresh fruit, and supply chain disruptions impact those imports. Additionally, we had droughts in Canada this summer, and crop yields were down in the area of 35 percent, which is making it more expensive.
• Durable goods, primarily things like household appliances and vehicles, all of which are impacted by those supply chain disruptions, especially with the ongoing global shortage of semiconductor chips.
• Construction costs are higher because of higher building materials (demand outstrips supply), and home and mortgage insurance prices have been rising as a result of severe weather-related claims.
• Gasoline prices have moderated, which is again, a global supply and demand issue.
• Oh, hey—stronger demand for air travel is increasing the price of fares.

So yeah, I’m not seeing a lot in here that is either Justin Trudeau’s fault, or something that he, or any other future federal government could do anything about. I mean, other than wage and price controls (which didn’t actually work), so if we want to bring back “Zap, you’re frozen!” that remains an option. As well, prices have started to moderate. Month-over-month inflation was actually down 0.1 percent, which could be the signal that things are starting to turn a corner.

We may already be past the inflation peak; CPI inflation over the past 3 months has been falling since September. pic.twitter.com/XJZaRKqRD7

— Stephen Gordon (@stephenfgordon) January 20, 2022

Hilarious. What federal powers does he plan to employ to accomplish any of this? pic.twitter.com/vlS9JgScOL

— Dale Smith (@journo_dale) January 19, 2022

https://twitter.com/LindsayTedds/status/1483990594770800643

Good reads:

• Justin Trudeau says that Russia is looking for an excuse to invade Ukraine and that Canada is ready to make further diplomatic and economic sanctions.
• Trudeau also said he has no plans to expand the law against harassing healthcare workers to covering politicians as well. (And hey, there are existing laws to enforce).
• The government appears to be in no rush to get the committee to examine the assisted dying laws, as required by statute, up and running.
• Given the 900 or so Canadian Forces members who refuse vaccination, here’s a look back at a case of a soldier who refused an anthrax vaccine in 1998, and quit.
• Another 200 Afghan refugees have arrived in Vancouver.
• Iqaluit’s water treatment plant has been contaminated with fuel for a second time.
• Stephanie Carvin explores the ways that Western governments are responding to the explosion in ransomware attacks, including active cyber operations.
• Kevin Carmichael sorts through the inflation data and looks for the signs that the Bank of Canada will soon raise rates, possibly as early as next week.
• Heather Scoffield points out the fact that it’s not domestic factors driving this bout of inflation, so there’s nothing really the federal government can do about it.
• Paul Wells is singularly unimpressed with the PMO readout of a Cabinet call on Ukraine, as it is a ridiculous marketing exercise spinning a fraught situation.

Odds and ends:

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