Comments on: Canadian Inflation Slows, But Is It Enough To Spark Rate Cuts?

By: Fraser

Fraser — Mon, 24 Jul 2023 09:52:03 +0000

In reply to Kate. lolllll, NO

By: GS

GS — Fri, 21 Jul 2023 19:29:07 +0000

In reply to Duddly-Do-Right. You are so right.

By: Yoroshiku

Yoroshiku — Fri, 21 Jul 2023 14:21:41 +0000

In reply to Duddly-Do-Right. The stretching of amortizations is political–they don't want people losing their homes. But they also don't want the housing bubble to collapse which would likely trigger a banking crisis.

By: Dave De La Rond

Dave De La Rond — Fri, 21 Jul 2023 11:31:17 +0000

Stat Can has the same integrity as Pravda had in the Soviet Union in the 70”s .The average salary there is $148,000 a year and they stay for life so no wonder they carry the water for Trudeau and his cabal

By: Andrew Baldwin

Andrew Baldwin — Wed, 19 Jul 2023 18:44:51 +0000

Super-core? Services ex shelter? What’s this about?
A big reduction in the CPI inflation rate was baked in the cake this June given that there was a 0.7% monthly increase in June 2022. So a lot of the decrease came from the exit effect of this June 2022 monthly increase leaving the 12-month inflation rate, which Statistics Canada for no good reason insists on calling a base-year effect. The next strong exit effect will be in August 2023, when the inflation rate is likely to increase due to the -0.3% August 2022 monthly inflation rate, followed by October 2023, when the annual inflation rate is again likely to decline due to another 0.7% monthly inflation rate, this time for October 2022, leaving the annual inflation rate.
The degree of the drop is somewhat suspect, given the biggest downward contributor to the slight 0.1% monthly inflation rate for June 2022 was travel tours, with a -11.5% change. This is one of the most seasonal categories imaginable. When this index was revamped to allow pricing in all months of the year and not just the high-season winter months, but it failed to do so. Anyway, the contribution of this series to the monthly change has to be taken with a grain of salt.
The biggest upward contributor to the annual inflation rate was mortgage interest cost, which showed a 30.1% increase. This is a record increase for this series, which dates back to January 1949. The CPI excluding mortgage interest had an annual inflation rate of 2.0%; i.e., if this were the Bank of Canada’s target inflation indicator, it would already have achieved its objective of getting inflation back to target. Ironically, I had written to Chrystia Freeland, the MP for Ukraine, prior to the 2016 renewal of the inflation-control agreement, saying that she should do just that. She never deigned even to acknowledge receipt of my submission. It was, of course, too much to expect a mea culpa from her now. However, It was a bit much for her to brag about Canada having the lowest inflation rate of any country in the G7, since this hasn’t yet been established. Japan’s inflation rate dropped from 3.5% in April to 3.2% in May. A similar dramatic drop could give Japan an inflation rate that is the same as or slightly lower than Canada’s. In any case, there are substantial differences between how target inflation rates are calculated across the G7. Four of the countries, Germany, the UK, France and Italy, calculate HICPs. The US also calculates an experimental HICP, and using that measure its inflation rate was only 2.7% in May 2023 and fell to 1.4% in June 2023, much lower than ours. Freeland should have insisted on StatCan calculating a Canadian HICP when she took over as Finance Minister, to give us a comparable inflation measure to our peers, but she hasn’t and likely she won’t.

By: Duddly-Do-Right

Duddly-Do-Right — Wed, 19 Jul 2023 14:29:19 +0000

In reply to Ray. If that were true, why would they be stretching amortizations to the legal max and illegally beyond that max? Why would they be pardoning mortgage fees and interest on interest? Something more sinister is going on. They will let you stay in "their" home with the above said "pardons" and you will rent-to-own until you die. You will own nothing but be happy, because Canadians have this misconceived perception of anything is better than renting. So even though you won't ever own your multi-million dollar home, you will still be "happy" renting it from the bank rather than being stuck in an apartment or other form of rental.

By: Ray

Ray — Wed, 19 Jul 2023 07:45:13 +0000

In reply to Ike. I can't believe you guys are even mentioning rate cuts. They're out to take their houses back.

By: Ike

Ike — Wed, 19 Jul 2023 04:15:46 +0000

Cuts? They’ll hike one more time.

‘To be safe’

By: Yoroshiku

Yoroshiku — Wed, 19 Jul 2023 03:08:26 +0000

Slightly o/t but… Why aren’t home prices included in Consumer Price Index? CPI includes prices for services and goods but not housing. Why? Maybe because it would have forced BOC to increase the prime rate years ago?

By: Kate

Kate — Wed, 19 Jul 2023 01:07:09 +0000

Is any one believe Stat Can?