As an outsider I was wondering what your inflation rate is like at the moment? Is the price of oil affecting Canada? How does the inflation rate compare with the amount of interest you get in investments at the bank or elsewhere?
Is the inflation rate in Canada very high?
Submitted 2 years ago by kiwiheretic@wolfballs.com to freeforum@wolfballs.com
sj_zero@lotide.fbxl.net 2 years ago
Official rate I think hit 5.5% this month, and everyone who doesn't have their butler doing the shopping knows that's bullshit.
Gas is basically $2 a liter now, and gas is seasonal so I wouldn't be surprised to see it hit $3 this year during the summer. Groceries have been consistently getting higher and higher.
A single family home across canada costs over $800,000 dollars.
Don't blame businesses, they're just passing the additional costs on, they can't magically charge less than it costs to buy stuff. The lead times on business purchases are massive now, and everyone is having their margins squeezed.
Interest at the bank isn't even worth talking about. It's less than 1%, has been basically forever.
Investments in general haven't been doing well, and there's a good reason for that: Their valuations are completely disconnected from reality. In the depths of the recession, most stocks were shooting up, despite most companies being wildly unprofitable. You can't have badly encumbered companies stock go up forever.
People working union jobs are getting particularly trashed, because their contracts are negotiated ahead of time. Imagine your costs are going up 5% this year, and your wages will be going up 0.5% or 1% while your union demands you pat them on the back for all their hard work...
kiwiheretic@wolfballs.com 2 years ago
Interesting, if interest rates are so low and inflation is mounting, then are the central banks not going to do anything to try to slow inflation?
sj_zero@lotide.fbxl.net 2 years ago
I think Canada's Central Bank was one of the first to end QE and start raising interest rates, but the same as all the others compared to the extremely high inflation we're seeing, a quarter point here in a quarter point there is basically nothing.