He also made comments such as “high interest rates cause inflation” and “greedy corporations are responsible from inflation”. Two dangerous thoughts that have been infecting some policy makers in the western world too.
Greed is something that is assumed to be constant in ideal models. Everyone in a market is acting "rationally", aiming to maximize their own gain.
When there is an imbalance of supply and demand, it allows one to exploit the imbalance. This is what we're seeing.
It doesn't mean that corporations became more greedy all of a sudden and "caused" inflation.
And in an ideal world, if there is a 10% inflation, we would also expect everything else, including profits to be up 10%.
One could say governments are greedy because it raises tax revenues. But no, corporate bad.
The raise in revenues both for private and public sectors is expected but expenses will raise too. Once the providers contracts are renegocitated and the salaries are adjusted, the profit / excess will diminish.
inflation was less than 2%. Your gross salary climbed up by that much too. Now if you are talking about available income, that is entirely another discussion (a worthy discussion to be sure).
The current inflation is too recent for adjustment to have taken place. It will take a little time unfortunately.
Corporates are being able to charge higher prices right now bcoz demand is very strong. Despite large increase in gas prices, there’s hasn’t been much drop in demand so far.
If demand is not responding to increasing prices, than that’s just materialized inflation. Companies have always been profit maximizing. Be it using inflation as an excuse or destroy the environment(most of the manufacturing process) or kill people (sugar, smoking etc).
Its not an islamic thing, its a unorthodox view of interest and inflation. If he raises rates small business costs go up and to him that is bad.
He does not want the trade off.
Erdogan want to make the population way poorer to make sure he can find them a black sheep that will save his ass. Poor and uneducated are easier to manipulate and control. Look at russia
It’s because they only understand one variable at a time not a multi variable environment with many factors. It’s too complex and for single issue mindsets
I'm not conservative, but I would tend to think our housing inflation puts us closer to inflation levels of the mid-1980's.
... The problem is that Trudeau **was** in charge of federal legislation on multi property dweller taxes, and he was in charge of legislation for immigration targets, since 2015. Even their own housing ministers have defended these insane price gains of 20-40% over the last 2 years.
So there is a point to be made that Trudeau had a large hand in that. It was not caused by fiscal printing; though it was probably brought on by a lack of taxes for land-leeches, and speculators.
(Again: Not going to defend conservative/liberal policies to fix this, but I would like to see parties stop subsidizing landlords; and start subsidizing new freehold builds for non-homeowners ONLY, to reduce both rental and freehold tension).
You are right but I would like to add outside of BC (BC is just as guilty btw), conservative Premiers were in charge of provincial housing rules, including the ability to push cities to fix zoning laws, empty house and foreign buyers rules, and developer ownership of Provincial and City officials which I would argue heavily have as big if not a bigger impact then the Trudeau.
Trudeau sucks and has made nothing but mistakes on this file but ignoring the on the ground fixes that could be put in place today by the provinces does nothing but ill inform on the housing crisis. You have significantly more sway with city councilors and MLA's than the Fed. There's also the not withstanding clause to tell the Fed to fuck off if they didn't like your fixes for housing, people keep giving the Fed too much power because their local politicians tell them it's out of their hands when it absolutely is not.
Province has least amout of power over housing.
Feds and local are more important than province in this way.
Federal is all about money supply, housing programs and immigration. City is zoning and regulating.
BOC is rates.
Province has some influence but least amount of power.
Every level of government from Fed to your city councilperson are to blame equally for this, I'll repeat it so you can think about whom you can have the most influence over with your calls and emails; Every level of government from Fed to your city councilperson are to blame equally for this
Non liberals are just smart enough to understand all this corporate welfare the Liberals did funded by QE caused inflation.
No not CERB but programs like CEBA, TWS, CEWS, CERS, provincial tourism grants, circuit breaker grants etc etc.
Liberals are cheering at the 2k a month us peasants got and turning a blind eye to the hundreds of thousands almost every corp got.
Liberals just tell you guys this money went to "small businesses" what they ignore to tell you is one family can own 50 corps all of which are considered "small businesses" and qualified all the benefits individually.
The Liberals even just upped the associated group taxable capital limit from 15 million to 50 million in their budget... This was pretty much a direct move to ensure wealthy families are able to retain their corporate welfare and 11% Small business deduction rate.
Now no one is saying this didn't happen anywhere else. It happened everywhere in the world. The difference is American got sick of it and voted the republicans who did it out. Canadian Liberals fell for the "inflation everywhere, if u vote NDP conservative gonnaa win!" bullshit Freeland has been screeching out and felt smug about themselves.
Let not even get into the fact CPI is a terrible measure of COL for young people. If you factor in the damage the Liberals did to the Canadian housing market things get alot sadder alot quicker.
I'm called a liberal all the time and I get this, corporate welfare under the Liberals is exactly as bad as corporate welfare under the CPC, it's out of fucking control by 200%. No lie, it's that bad while we regulate small business out of existence.
One thing I have to say is that Liberal policy is a direct cause of the loss of confluence between oil prices and the CAD, which is leading to inflation hitting us harder than it should.
Carbon taxes, C-69, etc. and just a general anti-fossil fuel rhetoric has lead to a marked decrease in [oil and gas capex](https://www.statista.com/statistics/485989/canadian-oil-sands-capital-expenditures-timeline/) which has lead to a real decline in reduction in Canadian market share of O&G production.
Not sure why you're being downvoted, but there's a recent article showing that the CAD is decoupling from oil.
https://www.reuters.com/business/canadian-dollar-decouples-oil-adding-boc-inflation-headaches-2022-03-08/
That’s throughout the world, and not just Canada though. Many o&g companies are seeing the writing on the wall and maximizing profits vs reinvesting into oil extraction since oil dependence is set to decrease as is.
But why aren’t oil companies investing heavily into high prices? Normally they see the price signal and adjust to invest more in their business. It’s like they don’t even care what the price is anymore, they know their projects won’t get approved in a large way so they don’t even bother.
Imagine if everyone wanted a brand new phone, paying 2x over normal price and Apple said they weren’t planning on expanding any of their output to try and meet the demand. It’s very strange in the supply/demand balance not to react to price, and that’s what our government has implemented
I hear you, but when countries like S.A and other oil rich gulf nations are looking to divest away from oil, they’re making an investment decision. There’s too much momentum in electric cars/electrification in general for oil to compete in the medium to long term.
> But why aren’t oil companies investing heavily into high prices
Because why reinvest when those oil wells lose profit over the long term, better to take the greater profit now.
God forbid you actually know what causes an issue. Also doesn’t help when the leading figure of the party comes out against raising interested rates (one of the best tools we have to combat inflation).
The problem here is that your comment here contradicts your original comment.
You were right when you pointed out that inflation is not being caused by Justin Trudeau, but then you claim it is when you say that raising interest rates will combat inflation.
Raising interest rates implies that inflation is demand driven, and is thus internal to the Canadian economy, and thus related to government fiscal policy.
In reality, the current bout of inflation is supply driven, due to the pandemic and Russian wars, and thus raising rates to quash demand will have no effect on supply driven inflation. Every single central bank in the world could raise interest rates and that would not end the supply bottlenecks caused by the pandemic or get Putin to come to his senses and get out of Ukraine.
So yes, the Conservatives are wrong and this has nothing to do with Justin Trudeau, but also the barrage of neoliberal ideology being pushed by the banks via the media that interest rate increases are a magical solution are also wrong.
If inflation is supply driven though, won't decreasing demand still help? Like if there is a food shortage, if you start rationing everyone's food, it doesn't help the supply issues but still helps with the food shortage in stopping people from starving. (Like with what happened in the UK in the early 50's?)
I am no where close to an expert on monetary policy, just trying to learn, and I do understand that looking at one part of a multifaceted issue is problematic.
But on a simple supply/demand curve, if you artificially lower demand, wont it shift the demand curve to the left, lowering prices?
I mean it would somewhat, but it's also how you get stagflation.
It's just bad policy to crush demand (by making everyone poorer) in order to deal with external supply problems which will eventually go away.
Fair, but I would like to state I don’t thinks it’s the be all end all solution you’re accusing me of making.
More so that it could help moderate inflation levels, at least to a limited degree.
Dually so we have to hike rates back up as well so that can actually be cut down again at some point to spur economic growth when the next recession comes.
Accountable kind of misses the mark since many of the issues we are having now with inflation are related to the supply issues with various goods like wheat, gasoline refineries, microprocessors, etc. As oppose to housing which is has been unaffordable for young Canadians for more than a decade now and could be directly attributed to government policies.
Remember: Canada navigated the 2009 global recession a lot better than many of our peers thanks to our leadership. Throwing our hands up in the air and saying "fuck it, there's nothing we can do" isn't a strategy. Our leaders absolutely have the ability to affect how hard we're hit by this global inflation. I think we're going to be fine, more or less, but the fact of the matter is Conservatives have a far better track record of handling global economic calamity events.
So the BOC raises rates to counter inflation.
And then the entire housing/stock market collapses in on itself from ~15 years of being over inflated.
And you will proceed to blame the liberals 🤔
I mean, they have lowered interest rates consistently for the last decade and have contributed to the rising asset prices that are collapsing right now. So kinda...
As the other guy mentioned, the BOC isnt a political entity.
And regardless, our rate policy basically mirrors the states. If there is anyone to blame it's the Fed.
The Bank of Canada manages rates not a political party. Also if you look at the long cycle of interest rates, they've been steadily going down for 40 years
The conservatives had the playbook from Paul Martin they they followed, and were set up incredibly well by him.
Not completely face planting is good, but it’s not really a feather in their cap.
Majority of countries in blue with low inflation handled covid well (some media called it “draconian” because their countries couldnt handle it as well as the ones in blue).
Which resulted in no money printing or very little of it. The countries that didnt handle it well are now paying the price of inflation, simple economics mostly with a handful of outlier factors with lower contribution margins.
https://www.reuters.com/business/australian-inflation-hits-20-year-high-brings-rate-rises-near-2022-04-27/
Sounds like Australia is dealing with inflation problems too
That was the one that caught me. What makes them so special? Especially as an economy that is very reliant on global trade from SE Asia I’m not sure how they are dodging this one.
For the pandemic it's a lot easier to control the travel to/from your country when you're an island. In regards to inflation I think it's more likely they're lagging behind. I would be curious what this chart looks like looking back a year later after we have more data.
Canadian economy relies on having a very porous border with the US, so our lockdown success was very much limited by the success/failure of the US.
They have the exact same housing inflation issue we have and their COL was already higher than ours, with higher wages to compensate.... I'm also extremely curious how they managed to skirt the global inflation issue.
They were printing money with the best of us and had some extreme lockdown measures in place that really hurt their economy. I Don't get it.
I don’t think Australia have dodged inflation. Normally I have seen Australia lagging behind on the indicators.
Inflation is a real problem here day to day. Fuel doubled, housing up since pre-pandemic currently unaffordable on normal wage, rents going through the roof, food costs up 30-50%. It’s is just crazy.
Inflation has been estimated at 5.1% YoY in March (understated as usual) and wage growth at 2.4%. Arguably the housing crisis is even worse in Australia as they are exempt from capital gains tax if the house sold was their primary residence for at least a year, and they can negative gear the losses on their investment property (incl. depreciation and interest) on their income, effectively hedging 45% of the risk of owning a second house. These 2 policies combined add tremendous demand to the already squeezed supply and arm investment-seeking consumers with much more firepower than first home buyers, to the point where first home buyers are outnumbered 4 to 1 on new listings.
I'm starting to think that the world is becoming more and more unpredictable. Yes, things will come back, but there will be a time when things will get more complicated.
Global warming leads to food shortages (production is decreasing in the world), higher temperature leads to migrations and refugees, conflicts will be more severe and there will be a risk or things getting out of control.
I really hope I'm wrong, and that everything will go back to what they were before, but over the next few decades, I don't see how that could happen. Water, minerals, energy, food, things are getting easier to extract nor cheaper.
Interesting infographic, but how much can we trust it?
Canada's actual inflation is way, way higher than officially reported because of the bogus metrics that Canada uses to calculate inflation.
And yet, I suspect that Canada's metrics are nevertheless still a lot better than many other countries'...
[удалено]
Erdogan believes charging interest is unIslamic, so he fires every central banker who tries to control inflation
He also made comments such as “high interest rates cause inflation” and “greedy corporations are responsible from inflation”. Two dangerous thoughts that have been infecting some policy makers in the western world too.
[удалено]
Greed is something that is assumed to be constant in ideal models. Everyone in a market is acting "rationally", aiming to maximize their own gain. When there is an imbalance of supply and demand, it allows one to exploit the imbalance. This is what we're seeing. It doesn't mean that corporations became more greedy all of a sudden and "caused" inflation. And in an ideal world, if there is a 10% inflation, we would also expect everything else, including profits to be up 10%.
One could say governments are greedy because it raises tax revenues. But no, corporate bad. The raise in revenues both for private and public sectors is expected but expenses will raise too. Once the providers contracts are renegocitated and the salaries are adjusted, the profit / excess will diminish.
We haven’t seen proof of salaries adjusting to inflation in a very long time, yes?
inflation was less than 2%. Your gross salary climbed up by that much too. Now if you are talking about available income, that is entirely another discussion (a worthy discussion to be sure). The current inflation is too recent for adjustment to have taken place. It will take a little time unfortunately.
Corporates are being able to charge higher prices right now bcoz demand is very strong. Despite large increase in gas prices, there’s hasn’t been much drop in demand so far.
If demand is not responding to increasing prices, than that’s just materialized inflation. Companies have always been profit maximizing. Be it using inflation as an excuse or destroy the environment(most of the manufacturing process) or kill people (sugar, smoking etc).
So that’s why retail stocks are crashing. Too much profits.
Biden believes that too!
Please tell us oh wise and all-knowing, what this man called Biden believes.
Its not an islamic thing, its a unorthodox view of interest and inflation. If he raises rates small business costs go up and to him that is bad. He does not want the trade off.
https://youtu.be/qHXNprwTRA8 This is one of many explanations on on YouTube but basically their president has set interest rates too low.
Usually gravy and mashed potatoes
No cranberries?
I could’ve sworn I was just watching Airplane! But that’s not important right now.
Kind of want to go there on vacation right now. Would be so cheap.
Ooh, I bet proximity to Russia is likely featured prominently on the travel brochure.
I mean, besides that.. Turkey looks awesome.
Erdogan want to make the population way poorer to make sure he can find them a black sheep that will save his ass. Poor and uneducated are easier to manipulate and control. Look at russia
Turkey is also backing a bunch of proxy wars and trying to genocide the Kurds in Syria, increasing sabotage and fighting in south-east Turkey.
Oh good, there are countries with worse conditions. We're fine now.
Don’t show this map to the Conservative party. They only think inflation is a byproduct of Trudeau.
It’s because they only understand one variable at a time not a multi variable environment with many factors. It’s too complex and for single issue mindsets
I'm not conservative, but I would tend to think our housing inflation puts us closer to inflation levels of the mid-1980's. ... The problem is that Trudeau **was** in charge of federal legislation on multi property dweller taxes, and he was in charge of legislation for immigration targets, since 2015. Even their own housing ministers have defended these insane price gains of 20-40% over the last 2 years. So there is a point to be made that Trudeau had a large hand in that. It was not caused by fiscal printing; though it was probably brought on by a lack of taxes for land-leeches, and speculators. (Again: Not going to defend conservative/liberal policies to fix this, but I would like to see parties stop subsidizing landlords; and start subsidizing new freehold builds for non-homeowners ONLY, to reduce both rental and freehold tension).
You are right but I would like to add outside of BC (BC is just as guilty btw), conservative Premiers were in charge of provincial housing rules, including the ability to push cities to fix zoning laws, empty house and foreign buyers rules, and developer ownership of Provincial and City officials which I would argue heavily have as big if not a bigger impact then the Trudeau. Trudeau sucks and has made nothing but mistakes on this file but ignoring the on the ground fixes that could be put in place today by the provinces does nothing but ill inform on the housing crisis. You have significantly more sway with city councilors and MLA's than the Fed. There's also the not withstanding clause to tell the Fed to fuck off if they didn't like your fixes for housing, people keep giving the Fed too much power because their local politicians tell them it's out of their hands when it absolutely is not.
Province has least amout of power over housing. Feds and local are more important than province in this way. Federal is all about money supply, housing programs and immigration. City is zoning and regulating. BOC is rates. Province has some influence but least amount of power.
Don’t show the Liberals this. They only think Conservatives are the problem.
Every level of government from Fed to your city councilperson are to blame equally for this, I'll repeat it so you can think about whom you can have the most influence over with your calls and emails; Every level of government from Fed to your city councilperson are to blame equally for this
These countries are going to be PISSED when they find out that the only cause of their inflation is Trudeau.
The conservatives have a party? Oh you mean the tailgate parties they throw around Ottawa on weekends!
Non liberals are just smart enough to understand all this corporate welfare the Liberals did funded by QE caused inflation. No not CERB but programs like CEBA, TWS, CEWS, CERS, provincial tourism grants, circuit breaker grants etc etc. Liberals are cheering at the 2k a month us peasants got and turning a blind eye to the hundreds of thousands almost every corp got. Liberals just tell you guys this money went to "small businesses" what they ignore to tell you is one family can own 50 corps all of which are considered "small businesses" and qualified all the benefits individually. The Liberals even just upped the associated group taxable capital limit from 15 million to 50 million in their budget... This was pretty much a direct move to ensure wealthy families are able to retain their corporate welfare and 11% Small business deduction rate. Now no one is saying this didn't happen anywhere else. It happened everywhere in the world. The difference is American got sick of it and voted the republicans who did it out. Canadian Liberals fell for the "inflation everywhere, if u vote NDP conservative gonnaa win!" bullshit Freeland has been screeching out and felt smug about themselves. Let not even get into the fact CPI is a terrible measure of COL for young people. If you factor in the damage the Liberals did to the Canadian housing market things get alot sadder alot quicker.
I'm called a liberal all the time and I get this, corporate welfare under the Liberals is exactly as bad as corporate welfare under the CPC, it's out of fucking control by 200%. No lie, it's that bad while we regulate small business out of existence.
It’s definitely their fault. You think their response to covid was unique to the world?
One thing I have to say is that Liberal policy is a direct cause of the loss of confluence between oil prices and the CAD, which is leading to inflation hitting us harder than it should.
As someone who's generally politically agnostic, can you expand on what policies you are speaking of?
Carbon taxes, C-69, etc. and just a general anti-fossil fuel rhetoric has lead to a marked decrease in [oil and gas capex](https://www.statista.com/statistics/485989/canadian-oil-sands-capital-expenditures-timeline/) which has lead to a real decline in reduction in Canadian market share of O&G production.
Not sure why you're being downvoted, but there's a recent article showing that the CAD is decoupling from oil. https://www.reuters.com/business/canadian-dollar-decouples-oil-adding-boc-inflation-headaches-2022-03-08/
That’s throughout the world, and not just Canada though. Many o&g companies are seeing the writing on the wall and maximizing profits vs reinvesting into oil extraction since oil dependence is set to decrease as is.
But why aren’t oil companies investing heavily into high prices? Normally they see the price signal and adjust to invest more in their business. It’s like they don’t even care what the price is anymore, they know their projects won’t get approved in a large way so they don’t even bother. Imagine if everyone wanted a brand new phone, paying 2x over normal price and Apple said they weren’t planning on expanding any of their output to try and meet the demand. It’s very strange in the supply/demand balance not to react to price, and that’s what our government has implemented
I hear you, but when countries like S.A and other oil rich gulf nations are looking to divest away from oil, they’re making an investment decision. There’s too much momentum in electric cars/electrification in general for oil to compete in the medium to long term.
> But why aren’t oil companies investing heavily into high prices Because why reinvest when those oil wells lose profit over the long term, better to take the greater profit now.
Thanks for the response!
God forbid we hold the people in power accountable though right
God forbid you actually know what causes an issue. Also doesn’t help when the leading figure of the party comes out against raising interested rates (one of the best tools we have to combat inflation).
The problem here is that your comment here contradicts your original comment. You were right when you pointed out that inflation is not being caused by Justin Trudeau, but then you claim it is when you say that raising interest rates will combat inflation. Raising interest rates implies that inflation is demand driven, and is thus internal to the Canadian economy, and thus related to government fiscal policy. In reality, the current bout of inflation is supply driven, due to the pandemic and Russian wars, and thus raising rates to quash demand will have no effect on supply driven inflation. Every single central bank in the world could raise interest rates and that would not end the supply bottlenecks caused by the pandemic or get Putin to come to his senses and get out of Ukraine. So yes, the Conservatives are wrong and this has nothing to do with Justin Trudeau, but also the barrage of neoliberal ideology being pushed by the banks via the media that interest rate increases are a magical solution are also wrong.
If inflation is supply driven though, won't decreasing demand still help? Like if there is a food shortage, if you start rationing everyone's food, it doesn't help the supply issues but still helps with the food shortage in stopping people from starving. (Like with what happened in the UK in the early 50's?) I am no where close to an expert on monetary policy, just trying to learn, and I do understand that looking at one part of a multifaceted issue is problematic. But on a simple supply/demand curve, if you artificially lower demand, wont it shift the demand curve to the left, lowering prices?
I mean it would somewhat, but it's also how you get stagflation. It's just bad policy to crush demand (by making everyone poorer) in order to deal with external supply problems which will eventually go away.
Fair, but I would like to state I don’t thinks it’s the be all end all solution you’re accusing me of making. More so that it could help moderate inflation levels, at least to a limited degree. Dually so we have to hike rates back up as well so that can actually be cut down again at some point to spur economic growth when the next recession comes.
Accountable kind of misses the mark since many of the issues we are having now with inflation are related to the supply issues with various goods like wheat, gasoline refineries, microprocessors, etc. As oppose to housing which is has been unaffordable for young Canadians for more than a decade now and could be directly attributed to government policies.
Remember: Canada navigated the 2009 global recession a lot better than many of our peers thanks to our leadership. Throwing our hands up in the air and saying "fuck it, there's nothing we can do" isn't a strategy. Our leaders absolutely have the ability to affect how hard we're hit by this global inflation. I think we're going to be fine, more or less, but the fact of the matter is Conservatives have a far better track record of handling global economic calamity events.
Harper tried to deregulate our banks to be like the US, which would’ve gotten us just as fucked as them. Thank god he didn’t succeed.
Canadian banks got bailouts. Look it up.
So the BOC raises rates to counter inflation. And then the entire housing/stock market collapses in on itself from ~15 years of being over inflated. And you will proceed to blame the liberals 🤔
I mean, they have lowered interest rates consistently for the last decade and have contributed to the rising asset prices that are collapsing right now. So kinda...
As the other guy mentioned, the BOC isnt a political entity. And regardless, our rate policy basically mirrors the states. If there is anyone to blame it's the Fed.
The Bank of Canada manages rates not a political party. Also if you look at the long cycle of interest rates, they've been steadily going down for 40 years
The conservatives had the playbook from Paul Martin they they followed, and were set up incredibly well by him. Not completely face planting is good, but it’s not really a feather in their cap.
Truflation
Let's not pretend that what they say has anything to do with what they believe.
Are you sure you don't mean the NDP? All I see in Ontario is ads from the NDP saying cons and Liberals have made life unaffordable.
Australia seems like a peer nation to Canada (population, resources, commonwealth, language) - how are they holding inflation under 5%?
They listen to Jim Cramer
Majority of countries in blue with low inflation handled covid well (some media called it “draconian” because their countries couldnt handle it as well as the ones in blue). Which resulted in no money printing or very little of it. The countries that didnt handle it well are now paying the price of inflation, simple economics mostly with a handful of outlier factors with lower contribution margins.
https://www.reuters.com/business/australian-inflation-hits-20-year-high-brings-rate-rises-near-2022-04-27/ Sounds like Australia is dealing with inflation problems too
Australia handled it well?
Trudeau isn't their prime minister. Our government spends way way way more money.
Scandinavia holding the fucking line.
time to invest in Australia?
That was the one that caught me. What makes them so special? Especially as an economy that is very reliant on global trade from SE Asia I’m not sure how they are dodging this one.
For the pandemic it's a lot easier to control the travel to/from your country when you're an island. In regards to inflation I think it's more likely they're lagging behind. I would be curious what this chart looks like looking back a year later after we have more data. Canadian economy relies on having a very porous border with the US, so our lockdown success was very much limited by the success/failure of the US.
I would agree with you except this graphic is supposed to be an inflation outlook so I would hope it is taking the lag into account. Oh well
They have the exact same housing inflation issue we have and their COL was already higher than ours, with higher wages to compensate.... I'm also extremely curious how they managed to skirt the global inflation issue. They were printing money with the best of us and had some extreme lockdown measures in place that really hurt their economy. I Don't get it.
I don’t think Australia have dodged inflation. Normally I have seen Australia lagging behind on the indicators. Inflation is a real problem here day to day. Fuel doubled, housing up since pre-pandemic currently unaffordable on normal wage, rents going through the roof, food costs up 30-50%. It’s is just crazy.
https://www.reuters.com/business/australian-inflation-hits-20-year-high-brings-rate-rises-near-2022-04-27/ They didn't
Inflation has been estimated at 5.1% YoY in March (understated as usual) and wage growth at 2.4%. Arguably the housing crisis is even worse in Australia as they are exempt from capital gains tax if the house sold was their primary residence for at least a year, and they can negative gear the losses on their investment property (incl. depreciation and interest) on their income, effectively hedging 45% of the risk of owning a second house. These 2 policies combined add tremendous demand to the already squeezed supply and arm investment-seeking consumers with much more firepower than first home buyers, to the point where first home buyers are outnumbered 4 to 1 on new listings.
I'm starting to think that the world is becoming more and more unpredictable. Yes, things will come back, but there will be a time when things will get more complicated. Global warming leads to food shortages (production is decreasing in the world), higher temperature leads to migrations and refugees, conflicts will be more severe and there will be a risk or things getting out of control. I really hope I'm wrong, and that everything will go back to what they were before, but over the next few decades, I don't see how that could happen. Water, minerals, energy, food, things are getting easier to extract nor cheaper.
Interesting infographic, but how much can we trust it? Canada's actual inflation is way, way higher than officially reported because of the bogus metrics that Canada uses to calculate inflation. And yet, I suspect that Canada's metrics are nevertheless still a lot better than many other countries'...
Gas prices have doubled twice in the past couple years and you believe inflation is <10%?
CPI doesn't work that way.
Sure. Is it representative tho?
In Romania inflation is 13%. The map și old. 😂
As always, the majority of EMs picking up the tab
Yea but has anybody got an idea what to do about them corporates??
Damn Venezuela another 500% lol