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Inflation 3.4% April 2021 (Told you so)

in Bank of Canada, Inflation, Stats Canada

For those that have not followed me since 2005, allow me to say, I told them so. Back in 2009, I warned Inflation was coming with all this stimulation, and here it comes (in 2021). Mark my words this is only the beginning.

OK, so I am very much the Blogger who Cried Wolf on Inflation. I am not even sure this is going to be the beginning of an Inflationary spiral.

Stats Canada thinks:

Year-over-year consumer price growth (+3.4%) in April rose at its fastest pace since May 2011 amid the third wave of the COVID-19 pandemic, mostly because prices fell sharply during the early months of the pandemic. As some regions extended restrictions to limit the spread of COVID-19, causing employment losses for some Canadians, prices grew 0.5% month over month in April 2021, the same growth rate as in March 2021.

Prices rose in every major component on a year-over-year basis. Transportation prices (+9.4%) increased in April, mainly because of higher gasoline prices compared with April 2020.

From Stats Canada Consumer Price Index, April 2021

Funny no mention of the Trillions being poured into the Economy by every Government world-wide? Maybe they ran out of ink? The Moore’s Law like growth of Real Estate prices not too much of a factor?

Transportation went up a lot, but Food and Shelter are going up big time too.

The Food thing is going to get worse, with the inability to get the migrant workers that our farms rely on into the country. Is it a good thing we need migrants to do this job? That is for another days discussion. Oh and Electricity prices in Ontario went “back up” when they changed back to a “peak” and “off peak” billing again.

What does the Bank of Canada think about this? Actually using their calculations we are only a little bit above their goals?

 January
2021
February
2021
March
2021
April
2021
 % change% change% change% change
CPI-common3,51.31.31.51.7
CPI-median4,62.12.12.12.3
CPI-trim4,72.02.02.12.3
Consumer Price Index statistics, preferred measures of core inflation – Bank of Canada definitions, year-over-year percent change, Canada

Source(s):Table 18-10-0256-01.

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Christmas Wishes from the Past

I seem to do this a lot, so here are my Christmas wishes from years gone by:

Additional Reads From Stats Canada

Previous Rants About Inflation

And that is just scratching the surface.

{ 3 comments }

  • ritefinance May 26, 2021, 3:09 PM

    Rightly said. Inflation looks like will knock us down throughout 2022.

    Reply
  • RICARDO May 25, 2021, 9:32 AM

    Well, with enough time on your side, you got it right – for now.
    Waiting to hear someone say – this to will pass. I think that is what the fed is trying to tell us for now.
    Personal opinion is that it is going up. How far and for how long is to be determined. Lived through the exorbitant rates in the late seventies & eighties. Was paying 14% on my mortgage back then. Also profited getting 20% for 5 years on an RRSP placement.
    Don’t worry, it is different this time 0r so some will say.
    Some might consider going to a more cash based portfolio to take advantage of the swings that will occur.

    RICARDO

    Reply
    • bigcajunman May 25, 2021, 9:34 AM

      Swings? I’d guess more like whiplash, but it could be very interesting times ahead.

      Reply

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