What caused our inflation to be 7%?

[Guest]

Inflation is now rapidly fading in the rear view mirror. This must be bothering main stream media as it doesn’t fit their storyline.

Fed QE was a colossal failure. Welcome rapid incoming asset deflation in-progress. It’s going to sting those set on the inflationary bandwagon . . . .

i'm curious , is this deflation something we should be able to see ?
because i sure aint seeing it
clear diesel $2.09 in saskatoon , that is part of everything we buy
every thing has a fuel surcharge on it

[TASFarms]

i'm curious , is this deflation something we should be able to see ?
because i sure aint seeing it
clear diesel $2.09 in saskatoon , that is part of everything we buy
every thing has a fuel surcharge on it

There is no reason for fuel to be that high in western Canada. Gouging.

[errolanderson]

There is no reason for fuel to be that high in western Canada. Gouging.

and gouging is not inflation . . . gouging is gouging.

[furrowtickler]

and gouging is not inflation . . . gouging is gouging.

Gouging adds to inflation

[Old Cowzilla]

Not a lot of options when you need winter fuel and you live in the GREAT WHITE NORTH.

[furrowtickler]

Canada’s Inflation explained ....youtu.be/uB8m5OM7URY

[tweety]

I only researched your example of George Weston Limited. Net profit margin is currently ~5%. Up from an average of closer to 2% over the past 20 years. From almost no profit margin, to almost razor thin profit margins. And you think that is the cause of inflation?

You have it backwards. The slim profit margins were possible because of stable conditions and efficiencies and low capital costs, and exploitation of cheap off shore labour of recent decades. All of those factors have been deflationary, now as we return to normal, as all those factors unwind, we view a return to the mean as inflation. Any business needs an ROI that compares with the cost of capital. The example you provided mirrors the cost of capital very closely. Who would invest in a grocery chain for 2% profit when GIC's are over 5%? But back when GIC's were closer to 0%, the 2% ROI was a great investment.

I guess you can choose to ignore the mountain of evidence that corporate profits are at record levels.

[tweety]

and gouging is not inflation . . . gouging is gouging.

But gouging is included in inflation as it is part of the CPI calculation.

https://www150.statcan.gc.ca/n1/daily-quotidien/221116/cg-a001-eng.htm

The interesting part of the chart is how high food and energy affect the CPI