Roundup: The wrong people taking credit for disinflation

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Statistics Canada released the January Consumer Price Index data yesterday, and lo, it shows that inflation is dipping back into the control range at 2.9% annualized, which was lower than anticipated, and fairly broad-based including food prices decelerating to just above the headline number, meaning prices are stabilising finally, and yet somehow, with carbon prices still in place, and the grocery oligopolies not having been subjected to punitive windfall taxes. Imagine that!

In all seriousness, because there were month-over-month price drops in fuel prices in Manitoba thanks to Wab Kinew’s decision to pause gas taxes, and Saskatchewan not collecting the carbon levy, we got a bunch of people who should know better saying stupid things about carbon prices and inflation. Kinew, who has economics training, should especially know better.

Inflation is a year-over-year measure. Carbon prices have a negligible impact on it because it rises at the same level every year, so it’s not inflationary. A one-time drop in prices is also not deflationary or disinflationary because it’s a one-time drop, not sustained or pervasive. If you need a further explainer, economist Stephen Gordon has resurrected this thread to walk you through it.

On the subject of things that are unfathomably dumb, it looks like the CRA has decided to buy Saskatchewan’s transparent legal fiction that the provincial government is the natural gas distributor for the province, in spite of it being against the clear letter of the federal and provincial law, which means that consequences for the province not remitting the carbon levy on heating will be borne by Cabinet and not the board of SaskEnergy. What the hell?

Ukraine Dispatch:

Russian attacks on the northern part of Ukraine killed seven on Tuesday, while Ukraine’s forces say they destroyed 13 out of 19 drones launched by Russia on Wednesday. Ukrainian officials are investigating the Russians shooting three soldiers captured on Sunday. Here is a look at the shattered ruins of Avdiivka. Ukraine’s state arms producer has signed an agreement with a German arms manufacturer to help produce more air defences domestically.

https://twitter.com/ukraine_world/status/1759942168989360468

Good reads:

  • Justin Trudeau was in Vancouver to announce $2 billion for the province’s fund to help accelerate construction of middle-income rental housing.
  • Trudeau also reiterated yet again that it’s “obvious” that rules weren’t followed by CBSA with ArriveCan, and that yes, investigations are ongoing.
  • In spite of announcing $475,000 in legal assistance for war-displaced Ukrainians, there is no plan to give those on special visas a path to permanent residency.
  • Ya’ara Saks is attributing the pushback against safer supply programmes for drug consumption to “stigma and fear.”
  • The increased rural top-up for carbon rebates means scaling back the rebates for small businesses, who say they are still owed $2.5 billion in past rebates.
  • There are delays in manufacturing artillery shells that can go to Ukraine because the manufacturers want a $400 million investment from the Canadian government.
  • Here’s the woeful tale of a “Christian” family from Canada who were so scared of gays and trans people that they moved to Russia, and immediately regretted it.
  • The government operations committee wants to compel the people at GC Strategies to testify, and they’re prepared to use the Sergeant-at-Arms to do so.
  • The transport committee wants an emergency dog and pony show meeting to harangue Steven Guilbeault about his “no more major road projects” comments.
  • Liberal backbencher Andy Fillmore is “very seriously” considering running to be the next mayor of Halifax.
  • David Lametti un-deleted his Twitter account after a lawsuit from Ezra Levant, so that its contents can be archived for history.
  • Quebec has decided to increase their demand to $1 billion in “compensation” for asylum seekers, and are scapegoating them for provincial underfunding of services.
  • Alberta is giving wildfire warnings in February. February! (What climate change?)
  • Susan Delacourt suggests that the Liberals and NDP get back to the reasons why they have an agreement, rather than the tough talk and threats.
  • My column points out all the things nobody talks about when it comes to the end of Liberal senators and the rise of the “new” Senate.

Odds and Ends:

For National Magazine, I delve into the debate over the bill to delay the extension of MAiD for psychiatric disorders.

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