Roundup: Graphing some drivers of inflation

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Just how much are the price of raw materials contributing to headline inflation? Well, the raw materials price index was released yesterday, and economist Stephen Gordon was curious, so he made some graphs.

Things I noticed: While gasoline is a big driver of headline inflation, the prices of wheat and beef are worth taking a look at because of the price spikes. What caused those spikes? Drought. Drought killed 40 percent of the wheat crop in 2021, and also meant a shortage of feed crop for livestock, which meant that ranchers had to cull herds to be able to afford to feed the remaining animals (because importing feed is expensive). This year we also saw more drought, which is having the same effect (and that drought has been persistent in southern Saskatchewan, which has to be in danger of turning into a dustbowl soon). And yes, there is a direct correlation to these more frequent droughts with climate change.

Also worth pointing out is the price of chicken also spiking, which was because of avian flu that meant culling flocks to prevent transmission. Again, that drives up prices. This is just more data to show that it’s not the carbon price driving up food prices—it’s climate change and its knock-on effects.

Ukraine Dispatch:

Ukraine’s largest private energy company says that they need more missile defences to protect power plants in advance of more Russian attacks over the winter. Ukrainian forces have confirmed that they have established several beachheads on the eastern banks of the Dnipro river, which is an important step in the counter-offensive. In Kharkiv region, the government is now building fortified underground schools because of the constant attacks. A Yale study says that more than 2400 Ukrainian children from four occupied regions have been taken to Belarus.

https://twitter.com/zelenskyyua/status/1725490287160529137

Good reads:

  • Justin Trudeau says that the Israeli military’s actions in Gaza are making it harder to achieve long-term stability in the region, and decried Canadians “lashing out.”
  • At the APEC Summit in San Francisco, Trudeau had a brief encounter with Xi Jinping and told him to keep communications open with Canada.
  • At the Halifax International Security Forum, Bill Blair insisted that support for Ukraine remains strong in spite of the world shifting attention to Israel and Gaza.
  • Blair also announced a $2.25 million fund to honour the legacy of Canada’s only all-Black unit to serve in the First World War.
  • Sean Fraser announced a $125-million loan for a massive wind-powered hydrogen project in Nova Scotia.
  • Tourism minister Soraya Martinez Ferrada says that Indigenous rights and decision-making needs to be considered as the country develops the tourism industry.
  • The Greener Homes Grant programme is running out of money ahead of schedule because it has been subscribed so heavily, with no indication it may be extended.
  • National security agencies are investigating how a Canadian company’s anti-drone technology was made its way to Russia.
  • The interim Ethics Commissioner is also now investigating the head of Sustainable Development Technologies Canada.
  • The Supreme Court of Canada ruled that Quebec’s financial tribunal has authority to deal with a transnational pump-and-dump scheme because there was a connection.
  • Pierre Poilievre and Jagmeet Singh are sharing their thoughts on the Gaza situation.
  • The NDP has secured an agreement to support the government’s affordability legislation in exchange for some amendments around the competition section.
  • One of Scott Moe’s MLAs was booted from caucus and stripped from responsibilities after being charged for obtaining sexual services.
  • Alberta has been underestimating their methane emissions by as much as 50 percent (which further betrays their claims that their oil and gas is “cleaner”).
  • Former prime minister Joe Clark reflects on our fraying sense of national unity and purpose, and what needs to be done about it.
  • My weekend column judges the likelihood that pharmacare legislation can be introduced and passed in the twenty sitting days that remain in the calendar year.

Odds and ends:

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