Comments on: Canadian Inflation Slowing, But Not Enough To Prevent Rate Hike: BMO

By: Frank

Frank — Mon, 03 Jul 2023 14:30:36 +0000

CPI , 3.4. Strip away mortgage interest, CPI is at 2.5. BOC are criminals, they have said 2% target, in verbatim it’s 2-3%. Not enough ppl have lost their homes which obviously is the goal so the cronies at the helm friends with deep pockets can swoop in for fire sales. Shame on the BOC, the government shame on reckless spending, adding a second carbon tax causing inflation to remain high as farmers need fuel and so do the trucks that deliver it, downloaded to the consumer. And don’t forget about summer driving season. Pathetic .

By: Andrew Baldwin

Andrew Baldwin — Sun, 02 Jul 2023 19:02:17 +0000

“Prices of products manufactured in Canada, as measured by the Industrial Product Price Index (IPPI), fell 1.0% month over month in May and were 6.3% lower than May 2022. In May 2023, prices of raw materials purchased by manufacturers operating in Canada, as measured by the Raw Materials Price Index (RMPI), decreased 4.9% on a monthly basis and fell 18.4% year over year.” These are leading indicators of consumer price inflation and indicate that inflation will likely continue to fall. Also, the exit effect, which for some reason best know to itself, StatCan chooses to call a base year effect, that pushed down the inflation rate for May 2023 will do the same for June 2023. The May 2022 monthly inflation rate was 1.4%. The June 2022 monthly inflation rate is half that at 0.7%, but still strong enough to virtually guarantee another drop in the annual inflation rate in June.
Core CPI inflation in general is a lagged indicator of All-items CPI inflation. The measures included in the new operational guide are particularly useless, since none of them exclude mortgage interest cost. Reitzes cheats by only looking at CPI-trim and CPI-median. CPI-common went up by 5.2% in May 2023! The average of the three measures was 4.5%. This compares with 3.7% for CPIX, the old operational guide, which does exclude mortgage interest cost. Reitzes should really stop looking at our operational guide at all, until we once again have one that is insensitive to mortgage rate changes. In any case, the bottom line is that core CPI inflation is better than our dysfunctional operational guide suggests, and does not support a hike in the overnight rate in July.

By: Rob Sue

Rob Sue — Thu, 29 Jun 2023 16:11:26 +0000

In reply to Ike. Stupid is as stupid does. If you bet that things keep going up than you made a good bet. But if things go down you made a bet not based on past reality and things are going to be different this time, read them and weep, based on the presumptions.

By: Nana K

Nana K — Thu, 29 Jun 2023 06:16:41 +0000

In reply to Ike. Property taxes are ridiculously low in Toronto. Let homeowners fund some of the city services they enjoy.

By: Ike

Ike — Thu, 29 Jun 2023 00:07:10 +0000

I just feel really bad for those with million+ dollar mortgages in Toronto whose property taxes might starting rivalling their mortgage payments soon.

By: Dan

Dan — Wed, 28 Jun 2023 21:58:21 +0000

In reply to Ravi. I agree, but they are often right. The 'other side' is optimistic on house prices because of supply/demand (decent arguments). These guys paint a picture about the terrible economic factors that enable that demand. So far, both have been right and have good arguments. If prices/economic conditions eliminate enough demand (ability or willingness to purchase a house) then it's downward pressure on demand. Not falling prices or falling demand, just downward pressure.

By: Ravi

Ravi — Wed, 28 Jun 2023 20:59:18 +0000

LOL. Your guys articles are always fear based.