Conservatives argue the Liberal government’s climate measure drives up the cost on everything. The inflation-watching head of the central bank offered some perspective on this.
It’s inescapably true that the federal carbon tax makes life for Canadians more expensive — before the “climate action incentive” rebate — and Bank of Canada governor Tiff Macklem reiterated this on a visit to Calgary on Thursday.
Pierre Poilievre’s Conservatives have made much sport of arguing the Trudeau Liberals’ tool to fight climate change has severely affected the affordability of fuel, groceries and other goods.
In questions following a luncheon address to the Calgary Chamber of Commerce, the central bank head said his team’s inflation-watching takes into consideration the Trudeau government decision to annually hike its price on carbon by $15 per tonne.
Normally one to deal in data rather than estimates, Macklem didn’t offer a more universal figure on the carbon tax, with the direct fuel markup added to the indirect costs those increases have on goods.
These impact measurements do not account for the fixed-price rebate the Trudeau government makes to households every quarter, the climate action incentive payment meant to offset the carbon tax’s added costs on vehicle fuel and home heating.
On the one hand, that provides a buffer to the inflationary burden that the levy creates; on the other, more money stuffed into Canadians’ bank accounts could itself put upward pressure on the increased demand that drives inflation.
The original article contains 812 words, the summary contains 214 words. Saved 74%. I’m a bot and I’m open source!
If your looking for someone to blame, blame capitalism. Middlemen who do nothing more than game the prices of your food. Ripping off the farmers, and then jacking up the price of the end product.
The carbon tax just enables them to mark up the price more.
The trouble with your comment is that the price in the grocery store is just following the rise we saw at the farm gate over the last couple of years, driven by that crop-destroying derecho, Euro fertilizer plant shutdown, and Ukraine conflict. As food is mostly sold on futures contracts, it’s only delayed, as expected.
The farm gate price has moderated this year. The grocery store price will come back down when newer contracts start coming into force. Same as in 2013, and every other time this kind of thing has happened. Short memories be short, I guess.
You might be right, and prices may come down. I am ignorant on goes on with pricing, but what I do see is the farmers are not thriving, and fresh food is always getting more expensive.
Yet Loblaws is able to post amazing profits, and they are the lower priced stores, the more independent stores are struggling to compete and they have to mark up their prices even more.
So my opinion is that farmers and smaller stores are struggling, but middlemen are thriving. This is based on those observations. My lack of trust in corporate models is based on profits over people.
I agree, Putin is disturbing the supply chains for food. But then I wouldn’t think that all food would be affected as it is.
We just got finished covering how the consumer price lags the production issues, and then you go look up consumer prices for the same year as the production issues? Short memories be short, I guess.
I apologized, I misinterpreted your comment to mean prices in 2013 fell, not supply issues in 2013 cause food inflation caused spikes/drops later.
Ignoring the COVID years, food inflation was pretty stable at 1-3% from 2010 on. That is a north american figure, so there can obviously be regional differences.
‘0.15 is 15%, so we need to raise our prices 15% (plus our standard markup (which is a minimum 100% markup)). The Left is ruining the economy for everyday people like you!’
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This is the best summary I could come up with:
It’s inescapably true that the federal carbon tax makes life for Canadians more expensive — before the “climate action incentive” rebate — and Bank of Canada governor Tiff Macklem reiterated this on a visit to Calgary on Thursday.
Pierre Poilievre’s Conservatives have made much sport of arguing the Trudeau Liberals’ tool to fight climate change has severely affected the affordability of fuel, groceries and other goods.
In questions following a luncheon address to the Calgary Chamber of Commerce, the central bank head said his team’s inflation-watching takes into consideration the Trudeau government decision to annually hike its price on carbon by $15 per tonne.
Normally one to deal in data rather than estimates, Macklem didn’t offer a more universal figure on the carbon tax, with the direct fuel markup added to the indirect costs those increases have on goods.
These impact measurements do not account for the fixed-price rebate the Trudeau government makes to households every quarter, the climate action incentive payment meant to offset the carbon tax’s added costs on vehicle fuel and home heating.
On the one hand, that provides a buffer to the inflationary burden that the levy creates; on the other, more money stuffed into Canadians’ bank accounts could itself put upward pressure on the increased demand that drives inflation.
The original article contains 812 words, the summary contains 214 words. Saved 74%. I’m a bot and I’m open source!
The people who need to learn this will never accept it because CBC.
Oh, so that’s why grocery stores like Loblaws have jacked up prices 200%. /s
If your looking for someone to blame, blame capitalism. Middlemen who do nothing more than game the prices of your food. Ripping off the farmers, and then jacking up the price of the end product.
The carbon tax just enables them to mark up the price more.
The trouble with your comment is that the price in the grocery store is just following the rise we saw at the farm gate over the last couple of years, driven by that crop-destroying derecho, Euro fertilizer plant shutdown, and Ukraine conflict. As food is mostly sold on futures contracts, it’s only delayed, as expected.
The farm gate price has moderated this year. The grocery store price will come back down when newer contracts start coming into force. Same as in 2013, and every other time this kind of thing has happened. Short memories be short, I guess.
You might be right, and prices may come down. I am ignorant on goes on with pricing, but what I do see is the farmers are not thriving, and fresh food is always getting more expensive.
Yet Loblaws is able to post amazing profits, and they are the lower priced stores, the more independent stores are struggling to compete and they have to mark up their prices even more.
So my opinion is that farmers and smaller stores are struggling, but middlemen are thriving. This is based on those observations. My lack of trust in corporate models is based on profits over people.
I agree, Putin is disturbing the supply chains for food. But then I wouldn’t think that all food would be affected as it is.
Food prices rise 1.2% in 2013, a low increase to be sure, and below projections (1.5-3.5%) but not a decrease. Overall CPI went up 0.9% for context.
We just got finished covering how the consumer price lags the production issues, and then you go look up consumer prices for the same year as the production issues? Short memories be short, I guess.
I apologized, I misinterpreted your comment to mean prices in 2013 fell, not supply issues in 2013 cause food inflation caused spikes/drops later.
Ignoring the COVID years, food inflation was pretty stable at 1-3% from 2010 on. That is a north american figure, so there can obviously be regional differences.
Or 15¢ per $100.
‘My business is literally ruined.’
Or
‘0.15 is 15%, so we need to raise our prices 15% (plus our standard markup (which is a minimum 100% markup)). The Left is ruining the economy for everyday people like you!’
No no, it’s 0.15%.
Yes, but businesses can say that without the consumer knowing better.
They absolutely cannot. Have you seen this somewhere?
For the first half of just plain incorrect math, I’ll point to the Verizon support call how they can’t figure out the difference between dollars and cents…
For the second half I’ll point to deranged salesmen like Mike Lindell.
What laws or rules are preventing a businesses from raising prices for any bullshit reason they like?
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https://piped.video/watch?v=JAbmm-1BdNI
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Laws to prevent price increases? No.
Laws to prevent lies in advertising? Yes.
Unfortunately they’re usually smart enough to keep the connection vague.