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Canajun Finances Home » Inflation at 7.7% May 2022 in Canada

Inflation at 7.7% May 2022 in Canada

Inflation is back for those who have been somehow living a quiet life entirely off the grid. Inflation is the rising of the: Cost of Living, Consumer Price Index or daily life essentials.

Inflation and a Flock of Seagulls
A Flock of Hairdressers

The last time it was this high I was in my 2nd year of University, and a Flock of Seagulls was a big thing. Those heady days of 1983. In those days you could buy a Canada Savings Bond with 19% yearly interest! Who would invest in the Stock Market, if you had less than a 4 year doubling period using CSBs?

No real sign of this rocket slowing down. I have been predicting this one, since 2009. At least we can hedge against it with #Bitcoin, no wait.

Lovely graphics from Stats Canada help us understand where the price explosions are coming from.

All the parts of the CPI graphically shown and how they have increased

When did this all start? Have a look at this graphic, which is very helpful.

12-month change in the Consumer Price Index (CPI) and CPI excluding gasoline

We had a good run with low inflation, but looks like we are going to have to live with it now, but for how long?

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Bank Rates for Past While… looks dramatic, but just wait!

What Shall We Do?

There are plenty of things that can be done if you have the financial ability to do so:

  • Lower your debt now, while interest rates are low. If you are unable to do that, maybe it is time to talk to a bankruptcy trustee or registered financial planner about what you can do about this. Things are not going to get better very soon.
  • It’s time to think about a budget again. Yes, budgets are very old-fashioned, but so was Inflation until a few months ago. If you have no budget, how do you know how Inflation is affecting you. If you have the ability to reign in your spending habits, now is the time.
Questrade

Previous Rants About Inflation

And that is just scratching the surface.

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