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!
I think we should all be thanking Galen Weston for his generosity. https://t.co/qp9L6AGjT6
— Stephen Gordon (@stephenfgordon) February 20, 2024
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.
Tell me you don’t understand how inflation works without telling me you don’t understand how inflation works. https://t.co/pZNtBjtoT2
— Dale Smith (@journo_dale) February 20, 2024
That’s not how inflation works. pic.twitter.com/IihMX84Qdp
— Dale Smith (@journo_dale) February 20, 2024
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.
This also goes for the spectacularly dim-witted take about the effects of a fuel tax cut on inflation https://t.co/ugpdBHEggI
— Stephen Gordon (@stephenfgordon) February 21, 2024
The same goes for *reductions* in fuel taxes. https://t.co/prf1QywwAz
— Stephen Gordon (@stephenfgordon) February 21, 2024
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?
I can't believe they are letting SK get away with this. I'm also mad that I have a column that was supposed to be in the Globe later this week about how stupid the SK gambit is, and it seems @JustinTrudeau is about to make @PremierScottMoe look like a genius.
— Andrew Leach (@andrew_leach) February 21, 2024
Saskatchewan's own legislation defines SaskEnergy as the exclusive distributor of natural gas in Saskatchewan. They have another section of their act that literally asks the federal government to play along in a game of make believe, and the Feds are going to do so.
— Andrew Leach (@andrew_leach) February 21, 2024
Here is the legislation in effect in SK right now. Section 7 is, "hey Ottawa, can we just pretend that the Minister is the distributor of natural gas even though Section 23 makes it clear that's not the case?" pic.twitter.com/7BPJwv5Q5e
— Andrew Leach (@andrew_leach) February 21, 2024
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
Ukraine's claims appears to be backed by the Institute for the Study of War's (ISW) assessment on Feb. 20, which observes that geolocated visual evidence suggests that Ukrainian forces maintain their limited bridgehead in the area.
— The Kyiv Independent (@KyivIndependent) February 21, 2024