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Gas costs alone are sending my personal inflation rate over 5%, and I don't even drive a lot -- just about 15K per year.
That's a ton of driving. An average of 41 km per day? Just curious, where you are going that takes this many km? Is it occasional super-long road trip vacations?

If it's for work, your employer should be reimbursing you for fuel costs required for work.
 

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I don't even drive a lot -- just about 15K per year
That's the average in Canada, so you drive average, so your personal inflation due to gas will be spot on with the CPI.

I consider I don't drive a lot because me and my wife we use the same car and we have family at 200 km away and yet we drive about 6,000 km per year, so we spend only about $500/year on gas. Even if gas price moves up +50%, that's not a big of an issue to us.
 

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So we've gone from CNN "Why inflation can actually be good for everyday Americans and bad for rich people" to Bloomberg "Inflation stings most if you earn less than $300k" in a few months


From Jan 10 in this thread

Why inflation can actually be good for everyday Americans and bad for rich people - CNN

Not sure how the headline identifies how inflation is bad for rich people. Also, there are a lot of assumptions around the positive results such as wage growth, appreciation of real estate etc.
A lot of the article focuses on very near term trade offs.

Yes inflation is good for GICs as long as you eat lentils but not in bulk and ride the bus
 

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We have gained significantly more in cola increases on our pensions and wage increases than our personal increase in cost of living expenses.

Inflation affects everyone differently, depending on their lifestyle choices and personal needs and expenses.

From what I have read, low income folks are the most adversely affected by rising costs for fuel, rents, and food primarily.

The government should direct their windfall revenues to pay an inflation benefit to low income folks, just as they do automatically for CPP and OAS benefits.

Maybe there will be something in the 2022 budget that is expected soon.
 

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Funny how CNN is saying inflations is beneficial for the bulk of people. Wonder what they are sniffing. In a year when inflation is worse and people are openly complaining I bet that article has been pulled !!!
 

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Inflation really is only good for the people who no longer worry about their finances.

Everything else is a farce, but I'm sure most people on here know that.
 

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We have gained significantly more in cola increases on our pensions and wage increases than our personal increase in cost of living expenses.
Not unless you work for the government.
Most people aren't seeing cost of living adjustments.


The government should direct their windfall revenues to pay an inflation benefit to low income folks, just as they do automatically for CPP and OAS benefits.
No, they should increase the basic personal deduction to a living wage.
People should be allowed to keep enough for their basic necessities before they have to start funding Trudeaus photo-ops.

Maybe there will be something in the 2022 budget that is expected soon.
More spending, Liberals don't believe that citizens are capable of deciding for themselves.
Tax relief, ie returning decision making power to the people, isn't in their playbook.
 

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BOC governor going to wish he had that rate hike that he chickened out on in late January. The Fed is talking about accelerating their hikes in light of inflation and the rumblings of a global recession coming up so there is an impetus to get some bullets in the gun fast.
 

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Discussion Starter · #471 ·
Inflation hit 6.7 per cent in March: StatCan | CTV News

last month was 5.7%. More rate hikes coming? Definitely a clear shift in interest rate policy. Current rates are still historically on the lower end but definitely a shift in public sentiment. I am already hearing from people concerned about being able to keep up with costs without signifacant wage increases. My discussions with business owners is that they have already increased prices but are seeing cost increases continuing to rise but are unsure how much they will be able to pass along to customers going forward. The Canadian economy is doing well but everyone sees clouds on the horizon.
 

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They need to raise it by full 1% imho.
The 0.5% raises every couple of months won't reduce inflation expectation.
Don't think they have balls to do that though. Remember, there are no independent institutions in Canada
 

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Well, according to this article, markets are pricing in 100% chance of another 0.50% hike in June. An economist from Scotiabank says there's a solid case for an even bigger hike, 0.75% or 1%. I doubt that will happen, but regardless, things are about to get real serious real fast.

Market bets on another jumbo interest rate hike in June
Please forgive me for asking this but can someone explain to me how the "market" is pricing in a whatever percent chance of a whatever percent hike at the next BOC meeting? The market is volatile, up and down everyday sometimes with reason, often with no rhyme or reason. Where or how do I look to find this actual market pricing data and how can it be a predictor of what a flesh and blood person will actually do at that meeting Does it predict if he would chicken out like he did in January? I don't see how the "market" can be a predictable indicator of anything since investors seen to respond like sheep to ridiculous things at times. Hell, Elon Musk knows he can manipulate it with in any direction he wants with one press release. I've been hearing this so much of late and need it explained to me.
 

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Please forgive me for asking this but can someone explain to me how the "market" is pricing in a whatever percent chance of a whatever percent hike at the next BOC meeting?
It's based on prices of short term fixed income investments, like a Banker's Acceptance (I don't know much about those, so don't ask!). TMX has a website tracking implied BoC interest rate movements according to how the Bankers Acceptance Futures (BAX) are trading.
TMX - Montréal Exchange - Canadian Interest Rate Expectations
The chart is hard to interpret when you're not used to it. And it's all speculative of course because like you said, it's people at the BoC who make that decision, it's not investors. But, I'd call them very well educated guesses.

Interestingly, BAX prices are currently suggesting a 62% chance of a 75bps hike by June. And there's only one BoC meeting left till then. Oh man.
 

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I'm not convinced that interest rate increases would solve the inflation problem today when it's mainly a supply-side constraint problem instead of a demand growth problem...

There's still lots of bottlenecks in supply chains globally with Covid restrictions hampering production of goods, or making it more costly if not hampered.

There's also the lost capacity for production from all the small businesses that were crushed during covid and didn't come back. Existing large businesses and new small business (fewer than before though) need to accelerate their production capabilities to make up for those losses.

I think rate increases today will stifle production growth coming out of frail businesses, more than it will suppress consumer demand.
 

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Funny how CNN is saying inflations is beneficial for the bulk of people. Wonder what they are sniffing. In a year when inflation is worse and people are openly complaining I bet that article has been pulled !!!
Don't make the mistake of thinking that an actual journalist wrote that story. CNN prints what they're told to print. It's just a press release disguised as news.
 
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