LILLEY: Inflation keeps rising while Trudeau barely notices
The farmer I was talking to the other day was quite happy in telling me the amount he’s getting for his canola this year is nearly double the usual price.
It’s another concrete example of the price increases Canadians have been facing and will continue to face.
A spike in the price of crops — like wheat and canola — can have a serious impact on the price of groceries. It’s not just the cost of a bag of flour or a bottle of cooking oil, these are basic ingredients that are found in a wide range of prepared and processed foods and used extensively at restaurants.
The price of mustard has tripled, lentils are up 67%, Alberta steers have seen a 15% increase over last year, while Ontario steers are up 20%. Dairy is getting an 8.8% boost in the base price.
The question is what?
The Bank of Canada could increase interest rates to cool the economy, but that could have the impact of hurting families just coming out of the economic strain of COVID. How many homeowners would be struggling with an unexpected increase in their mortgage payments, lines of credit, or credit card debt?
Likely more than would admit to it.
Now comes a warning from Scotiabank that if the Trudeau government continues its free-spending ways, inflation will only get worse.
In a note to clients, economist Rebekah Young described the current fiscal situation in Ottawa as neither “excessively loose nor excessively restrictive over the medium term,” but that government policy could contribute to price shocks in coming months if our politicians are not careful.