News

 

Cost of living up again last month

Consumer prices rose sharply in February

Statistics Canada says consumer prices rose sharply in February compared with the previous month, although the annual inflation rate actually dropped to 1.1 per cent.

Canada's annual inflation had been expected to drop in February because of a sudden jump in gasoline prices in the same month last year, but Statistics Canada reported a smaller decline than expected.

The consumer price index also rose more between January and February than the estimate.

Statistics Canada says the month-over-month increase to CPI was 0.8 percentage points in Februarydue to higher prices for travel tours, hotels, autos and gasoline.
Economists had estimated the month-over-month increase would be 0.6 percentage points and that annualized inflation would be below 1.0 per cent, which is at the low end of the central bank's target range.
Instead, the rate is now in line with what the Bank of Canada believes is the trend inflation rate after volatility is discounted, although still well below the bank's ideal target of 2.0 per cent.
Regionally, inflation was strongest at 2.7 per cent in Prince Edward Island and weakest in British Columbia, where prices declined by 0.3 per cent.

Leave a comment:

showing all comments · Subscribe to comments
Comment Like
  • 24
  1. john posted on 03/21/2014 12:50 PM
    so why is this news ? we already know that .
  2. Sarah posted on 03/21/2014 01:31 PM
    Oh gee, I wonder why.

    First, a public sector union goes on strike. Thanks to their in-any-other-circumstance-unlawful monopoly, they get their higher wage whether they've earned it or not. This raises taxes for everybody.

    Then, some private sector union notices their paycheques don't go as far. Doesn't really matter where they are; let's say it's the factory that makes Acme Stovetop Noodles. They go on strike demanding higher wages, since the tax increase raised the cost of living, and the factory owner caves. Now the price of the Noodles goes up so the factory can stay in business. Meanwhile, the same thing is happening with the shipping company that gets the Noodles to stores, so the price has to go up even FURTHER not only on the Noodles, but on everything else that company ships to make up for the higher cost of shipping it.

    And are they done screwing us? Oh no, because now everything in the supermarket costs more thanks to this unionized butterfly effect, and Joe Six-pack working minimum wage gets annoyed. Rather than speak up against the cause of all this, he demands a higher minimum wage, and gets it. Now businesses across the province have to increase their prices on everything AGAIN, to cover the higher cost of paying their workforce to do the same minimum-wage work.

    Then someone working in the public sector walks into the supermarket to buy some Acme Stovetop Noodles. "Hmm," she says, "everything is more expensive. I'd better bring this up at the next union meeting, we may need to go on strike for higher wages soon."

    Stop unions, stop the cycle.
    1. HP posted on 03/21/2014 03:59 PM
      @Sarah If you exclude the public sector, there aren't that many union jobs left in Canada...and without the influence of the unions, everyone would be working for minimum wage. The privatization of garbage collection in Toronto is a good example...when Rob Ford went private, the union workers making $25/hr were replaced by workers making $12/hr.

      Right now the world governments are trying to stimulate inflation to get it as high as possible without killing the economy. They need higher prices and higher incomes to pay their way out of their incredible debt. America is printing $85billion/month, has printed over $3trillion...Canada is doing the same. 100% inflation would reduce their debt by 50%...and unless incomes keep up, the public will see their buying power and standard of living reduced. Those that get screwed are people on fixed incomes like the retirees.

      Governments worst fear is deflation where servicing the debt will cost more in real dollars. We were almost there a couple of years ago...
    2. Mark7 posted on 03/21/2014 06:54 PM
      @Sarah Excellent post Sarah. You did not miss any points. Two thumbs up.
  3. john posted on 03/21/2014 03:38 PM
    i say get rid of the unoins and replace them with people who wanna have jobs there are tones of people who will kill to get good jobs like these guys got .
  4. frank posted on 03/21/2014 04:53 PM
    People are now spending eight times their annual income to buy a home, about 350% more than 30 years ago. How does that affect the cost of living calculation?
    1. Kirin posted on 03/21/2014 05:12 PM
      @frank And what's a HUGE factor in how expensive homes are getting? The sky-high rates charged by unions at every stage of construction, so that 5 guys can drink coffee and watch a sixth guy do the work.
  5. Paul posted on 03/21/2014 06:58 PM
    Unions and the government that keeps pandering to them are sending us spiraling toward total economic collapse. RIGHT-TO-WORK IS WHAT WE NEED, WE'VE HAD IT WITH THAT UNION GREED.
  6. Earl Richards posted on 03/22/2014 05:32 AM
    To avoid the gasoline price rip-off, plug your Tesla S electric car into your household, solar array.
  7. Karl Burgin posted on 03/24/2014 10:53 AM
    Ok....so the cost of living has gone up. Does that mean we all get raises- or does that notion only apply to over-paid public sector workers and CEOs?

    Here's a crazy thought- how about figuring out a way to LOWER the cost of living, so as the price of everything goes down.
    i.e.- lower the cost of gasoline, heating , electricity. Which in turn will lower the cost of goods and services. Which in turn more people will be able to spend. Which in turn will help stimulate the economy.
    1. HP posted on 03/24/2014 12:23 PM
      @Karl Burgin Don't say stupid stuff as you have no concept of fiscal and monetary policies that are the drivers here.

      First, you don't get raises, especially if you're on a fixed income like retirees and people working neck-down jobs, like IT.

      Secondly, lowering the cost of living is called deflation, economic suicide in today's economy...with deflation, governments would be forced to print gazillions of new money, raise taxes to 150% of income, and unemployment would skyrocket. However those on fixed incomes would be the real winners.

      Thirdly, energy prices a driven globally...the nations prepared to pay will get the oil.

      Lastly, the economy would be devastated if deflation was a factor. Think back to the depression (read deflation)...the price of production exceeded the value of the product, forcing farmers to dump milk because it cost more to produce than they could sell it for. Thousands of factories closed because the products they made sold for less than the cost of making them. It took WWII and huge inflation and government spending to raise the prices to sustainable levels.

      How old are you...5?
  8. Louis posted on 03/24/2014 12:02 PM
    Sarah is right, we need SERIOUS checks and balances on the power that unions hold; if we leave them to their own devices, they'll ruin our economy just as sure as they ruined Greece.

    What we need is a group like Working Canadians, spreading the word and raising awareness about this power imbalance and the unethical ways union bosses abuse their power. Even better, as a registered non-profit your donations are tax-deductible!
showing all comments

Your GTA

Sign Up For Breaking News Alerts

Becoming a member only takes 60 seconds! Members get access to exclusive information and products that non-members do not, including concert ticket presales, trips, advance notice on upcoming entertainment events, movie screening passes, music giveaways and more!

Login with Facebook

Stay connected 24/7! Receive breaking news and programming alerts right to your inbox. CLICK HERE to sign-up.

Today's Poll

By Friday, we'll be into August. Have you enjoyed everything you set out to enjoy this summer?

Voting is restricted to one vote every 24 hour(s) VoteResults

Top Stories

Facebook

Twitter