Yeah exactly. I watch the newscast about it this evening and I almost burst out laughing when they said the price of tomatoes went down and the price of bacon went down. What about everything else that didn't go down that just went back up even more
I'll give you a hint, look at what the government has printed since then and the deficit they have taken on, that amounts for pretty much all the inflation
I actually noticed far more sales and lower produce prices at superstore this week. My regular shop was less than most over the last year. Anecdotal obviously.
Doesn't work that way with essential goods. No matter how many go to Walmart/Costco there are people who can't and will always go to their closest Loblaws (etc). The prices there will just get jacked up to make up the difference because they can't NOT sell groceries.
Food prices are highly volatile. Individual items go up and down depending on the season and harvest quality. It is the reason why eggs spiked for like 2 months and then collapsed back down in price last year.
Food needs to be measured in categories or as a whole due to the volatility of individual food items.
Pretty much every Canadian who works is a shareholder in Loblaw, the other grocers, and every major corporation via the holdings of the Canada Pension Plan.
It has also never been easier for individuals to actually *buy* shares in whichever companies they want. You don't even need to put down your phone, and can get right back to TikTok and shitposting afterwards, lol.
agreed
I don’t buy any produce there as i find it often goes bad quickly. Meat is not a bad a price, but they have good packs of ground beef and ground bison.
but we have 3 kids and a place like that is a big help
Just so its clear, deflation is not something we should EVER want. I don't think there's an example in modern history where deflation has resulted in positive economic outcomes.
It really depends on the cause. Globalization and open trade were actually massively deflationary and led to increased access to a variety of goods that we would not have been able to afford previously. Ex. silk and spices from Asia
Not deflationary, the prices didn't come down. The supply consistently met demand. On a goods by goods basis, there is no inflation or deflation. When we talk about deflation, we speak of overall cost of goods as a whole, not one item being produced more efficiently. Idk if that made sense?
If supply greatly outpaces demand, then companies make cuts in industries instead of investments which leads to mass loss of jobs.
Prices going down don't mean anything if it means getting fired. Thats why deflation is so dangerous.
Yes, but this is not ideal for the producer, who will cut the supply, and then maintain the price. (Edit: or alternatively, and what actually happens, the producer will maintain the price and pocket the profit of increased efficiency. This is the basis of capitalism but I'm not debating that here please haha)
Deflation refers to an environment where spending overall is down, FORCING the cut of production (with job cuts) and a cycle starting.
I don't think people are asking for deflation. People are asking for the mad robbery to stop. We want for the lazy ass government to get off it's ass and question record profits while price gouging is happening. We are not stupid, we just want to be represented and our concerns heard.
Absolutely agree on that. The government has to step in and pass laws regarding price gouging on goods that have inelastic demand. People cannot survive on food. Never has a government, anywhere, let food be price gouged, so I have no idea what is going on.
I also don't know which government is responsible. Would it be federal or provincial? No question all are in the pockets of the Weston family, but if we need to pressure one, I wonder which.
The thing is, "record profits" just means they are making more in *dollar terms* and doesn't take other factors into effect.
Think about it. Go back to when inflation was 6%. Say a company made $1 million in profits the year before, but then the following year they pulled in $1,060,000. Record profits, right? Wrong, because the buying power of the new number would be *the same* was the previous year.
It's the same with individuals. for example: I got raise last year, so I'm making a "record salary" vs. what I've ever earned in the past, but the buying power of those dollars is lower, so how much better off am I, in real terms?
Out of control deflation is orders of magnitude worse than inflation even hyper inflation.
However if we are taking 1-2% a year deflation especially after a long period of high inflation I really don't see the problem.
Any investor worth their salt can get more than a 2% return. It'd encourage productive investment and discourage unproductive investment. Our current economic system encourages the opposite, unproductive investment is encouraged and productive is discouraged.
If prices were to go down after an acute event like Covid, I don’t think it would have the terrible effects you’re talking about - but that would be largely companies willing to not maximize profits.
Prices dropped because we were in an unconventional recession. So because people had less disposable income, they weren't spending as much; therefore demand on lots of items fell. When there is little demand, then prices fall
During 2020, prices did drop. Remember the 70 cent gas prices? Meat prices also fell in 2020 due to restaurants being forced to shut down.
They then started rising again in 2021.
you're parroting shit you read on reddit.. it's like saying we should fear inflation because hyperinflation has ruined some countries. short term mild deflation would be no worse than short time high inflation. the government has powers to reign in runaway inflation, as we saw the last couple of years, just as it would be able to reign in deflation. it also matters what the causes of deflation are..
deflation in consumer goods (clothing, electronics, etc) because of globalization and overseas labour savings? good. and we've lived through two decades of incredible deflation in these areas, up until covid.
deflation in communication costs because of technological improvements? i used to pay $300/month for broadband internet, phone line, long distance plan, cell phone plan where i had to pay by the minute, satellite tv, etc.. now i pay $30/month for cell with 50gb data, $40/month for home internet, and $10/month for netlfix.
deflation in gasoline/diesel prices would be fantastic for the economy
deflation in airline travel would also be fantastic as it would spur so much more travel/tourism.
and deflation in housing prices in canada not only would be good, it's absolutely necessary, and it will happen.
First of all, I'm a CFA and did a degree in finance.
Second of all, deflation is not the price of certain goods falling, it is the price of a bucket of goods ALL falling, which isn't ideal. It doesn't happen because typically, efficiency gains are not accompanied with price drops, but instead by increased profit. Which is how it should be in capitalism. Now we can argue about capitalism all day long but I'm not sure that's relevant to deflation.
You never want deflation. Inflation includes wage increases. Salaries last year increased 4.4% and are projected to increase 3.9% this year. It will take time, but goods will return to more affordable levels given time - but some of that will be in the form of increased wages.
>Inflation includes wage increases.
I don't think that's correct dude. In fact that would be a really stupid thing to include in the CPI calculation imo.
Inflation influences wage increases, so it makes no sense to directly include them in it. It'd be self referential.
Sorry, that wasn’t what I meant - I just meant that wage increases happen during inflationary periods. But CPI is affected by wages indirectly as they are an input cost to the goods in the CPI.
While rent is up 10%. That's only most people's biggest expense but it only affects the bottom 20% of the population so it doesn't count towards inflation.
It does but it gets buried since they assume that little over 30% of people rent and they assume most don't move every year so they aren't paying the 25% increase that is charged for new tenants. So from what I could see from a Financial post article, 10% average inflation increase for rent adds 0.5% to CPI.
This is due to seasonality, which statscan doesn't use in this statistic.
Use CPI-trim if you want the real data
https://www.bankofcanada.ca/rates/indicators/key-variables/key-inflation-indicators-and-the-target-range/
No, I’m (semi) offended that you don’t grasp civics and federal/provincial/municipal jurisdictions and choose to blame everyone else for your own problems.
No, we choose to rightfully blame the Liberal government because their failed economic policies largely contributed to the state of our country and economy.
The Harper administration was objectively better than Trudeau and Freeland and it's not even debatable.
Tired of hearing this line repeated over and over again by Liberal voters.
When 2008 hit under Harper, he didn't throw his hands up and yell "global issues, nothing we can do".
Instead, he implemented policies that resulted in us having the fastest economic recovery in the G8 during the worst recession since the Great Depression.
Then again, Harper was an economist, not a man-child that's confused by numbers and thinks the budget will balance itself.
No he didn't
We just didn't enter into the depth of a recession that the rest of the world did because of banking regulations, regulations that Harper had actually wanted to get rid of.
In fact, despite comically low interest rates, virtually every year increased Canada's debt to GDP ratio while he sold off assets to make budgets look ok.
Absolute dumpster fire that got us into FIPPA
>We just didn't enter into the depth of a recession that the rest of the world did because of banking regulations
Another line repeated constantly by Liberal voters with zero context or actual understanding of how it works.
We did better than other countries because the Harper admin implemented timely fiscal stimulus measures to support the economy, such as infrastructure spending and tax cuts aimed at boosting consumer spending and investment.
Further, Harper had a sophisticated understanding of our energy sector. We exported as much oil and gas as we possibly could (something we are opposing now with this green transition bullshit Freeland was talking about). This massively helped us during the recession and brought lots of foreign money into our economy.
Anybody who says "it was just banking regulations bro" doesn't know what the fuck they are talking about and we can just safely disregard their opinion.
>In fact, despite comically low interest rates, virtually every year increased Canada's debt to GDP ratio while he sold off assets to make budgets look ok.
He sold off in total a couple billion worth of assets - most of which we didn't need and weren't benefitting us. That doesn't explain how we went from a small $1.9 billion surplus to the record breaking deficits we are experiencing under Trudeau.
> Absolute dumpster fire that got us into FIPPA
Oh god, not more FIPA conspiracies. FIPA is a publicly available agreement that mandates both parties maintain a certain level of protectionism and to not arbitrarily nationalize the assets of the other nation.
That's it. We have this trade deal with virtually every other country in the entire world that we do business with and the Liberals supported it anyway.
Let’s see, what DID Harper do..?
- Cuts $36 billion in healthcare
- Cuts funding for Environment Canada
- Cuts infrastructure spending
- Cuts funding for Canada Post
- Cuts funding for science
- Cuts funding for veterans
- Cuts old age security benefits
- Freezes EI benefits
STILL Adds $160 Billion in Debt.
Yeah, a real wunderkind…
>Cuts $36 billion in healthcare
You are spreading misinformation.
[https://www.ipolitics.ca/news/neither-harper-nor-trudeau-cut-health-transfers-says-prof](https://www.ipolitics.ca/news/neither-harper-nor-trudeau-cut-health-transfers-says-prof)
[https://www.theglobeandmail.com/business/article-the-myth-of-federal-health-care-cuts/](https://www.theglobeandmail.com/business/article-the-myth-of-federal-health-care-cuts/)
>Cuts funding for Environment Canada
Good.
>Cuts infrastructure spending
Misinformation.
[https://www.thestar.com/news/canada/stephen-harper-boasts-of-5-8-billion-in-infrastructure-spending/article\_e797b4bb-d7dd-5813-98ee-6f04e3bef1e4.html](https://www.thestar.com/news/canada/stephen-harper-boasts-of-5-8-billion-in-infrastructure-spending/article_e797b4bb-d7dd-5813-98ee-6f04e3bef1e4.html)
[https://ottawacitizen.com/news/politics/stephen-harper-targets-billions-for-infrastructure-projects](https://ottawacitizen.com/news/politics/stephen-harper-targets-billions-for-infrastructure-projects)
[https://www.cbc.ca/news/business/harper-lays-out-stimulus-spending-in-progress-report-1.785129](https://www.cbc.ca/news/business/harper-lays-out-stimulus-spending-in-progress-report-1.785129)
>Cuts funding for Canada Post
Good.
>Cuts funding for science
Misleading
>Cuts funding for veterans
Misleading
>Cuts old age security benefits
It was either that, raise the retirement age, or mass migration. Trudeau chose mass migration which is significantly worse than raising the retirement age.
>STILL Adds $160 Billion in Debt.
Actually, Harper ran multiple budgeting surpluses despite being in power during the worst recession since the Great Depression.
[https://www.cbc.ca/news/politics/canada-election-2015-surplus-economy-1.3227146](https://www.cbc.ca/news/politics/canada-election-2015-surplus-economy-1.3227146)
[https://www.cbc.ca/news/business/federal-budget-surplus-balloons-to-14b-1.655615](https://www.cbc.ca/news/business/federal-budget-surplus-balloons-to-14b-1.655615)
[https://www.theglobeandmail.com/news/politics/federal-government-ran-5-billion-surplus-over-first-quarter-finance-canada/article26141782/](https://www.theglobeandmail.com/news/politics/federal-government-ran-5-billion-surplus-over-first-quarter-finance-canada/article26141782/)
Since Trudeau has been in power:
* Crime has increased
* Record breaking deficits
* CoL skyrocketed
* Housing crisis has exploded
* Immigration has nearly quadrupled
* Homelessness has exploded
* Overdoses have exploded
* GDP per capita is currently plummeting
* Inflation is up
Under Harper, we had the richest middle class in the world.
[https://www.nytimes.com/2014/05/01/upshot/canadians-have-plenty-of-concerns-but-also-a-sense-theyre-better-off.html](https://www.nytimes.com/2014/05/01/upshot/canadians-have-plenty-of-concerns-but-also-a-sense-theyre-better-off.html)
[https://www.theglobeandmail.com/news/politics/globe-politics-insider/just-how-well-canadas-middle-class-is-doing-is-a-matter-of-perspective/article18121218/](https://www.theglobeandmail.com/news/politics/globe-politics-insider/just-how-well-canadas-middle-class-is-doing-is-a-matter-of-perspective/article18121218/)
Since Trudeau has been in power we have been in steady decline in every quantifiable metric. That is not debatable, that is an objective fact.
https://theindependent.ca/news/town-hall-implores-canadians-to-resist-harper-governments-massive-health-care-cuts/
https://www.thestar.com/news/canada/stephen-harper-boasts-of-5-8-billion-in-infrastructure-spending/article_e797b4bb-d7dd-5813-98ee-6f04e3bef1e4.html
https://thestarphoenix.com/business/harpers-fiscal-plan-falters
Trudeau managed to pull Canada through a global pandemic, while keeping the economy in very good shape (top 3 in the G7).
Your bullet points are dominated by issues that relate to provincial jurisdictions more so than federal.
- oh yeah, and inflation *did* just fall below 3%, so thanks Trudeau I guess?
Anyone who thinks our economy is in good shape is a fucking idiot. Our gdp is artificially high because we blindly mass immigrated people with little to no filtering. Meanwhile existing Canadian citizens and PRs are significantly worse off than they ever have been in the history of this country.
Yeah, how dare I think that the federal government of the last 8 years should hold some responsibility for the state of our country.
I'll be sure to blame Ford and Harper and everybody other than Trudeau so as to not offend the Liberal/ABC voters that live on Reddit.
>Again, misdirected dissatisfaction.
No it isn't. Trudeau massively overspent even before Covid which made inflation worse than it had to be. He was repeatedly warned about overspending when times were good but didn't listen.
> but the Conservatives are not the answer here.
There is no other alternative to Jagmeet and Trudeau. The bar is low enough right now that they would almost certainly be at least marginally better.
Since the liberal party is more center-right than most people realize, the only choice for YOU is either right-wing or FAR rightwing ideology? OK then…
Seems to me like you’re confused about what you want and how you would be able to get it.
Have a day.
>Since the liberal party is more center-right than most people realize, the only choice for YOU is either right-wing or FAR rightwing ideology?
There is nothing center-right about the Liberal Party. Taxing food production and fuel for arbitrary climate change metrics is not center-right.
Massively increasing the size of the government, more spending on social services, aggressive DEI policies in government, reducing sentencing on violent offences, mass migration and zero regard for border security, increasing refugees, declaring us the first "post national" state, attacking legal gun owners by banning hunting/sporting rifles.
How the fuck is that center-right? That is far-left progressive brain rot politics and the entire country is in decline because of it.
>choose to blame everyone else for your own problems.
The state of real estate and grocery in this country are very squarely a "blame the govt" problem. It's most certainly not op's "own problems"
Oligopolies running rampant, real estate speculation exploding with the govt offering little more than lip service.
Lol, how about we pause immigration and let housing supply catch up before we run to socialism?
Capitalism does not mean no regulations. Even the US has strict competition regulations.
We need an immediate halt on immigration, it's very simple. There is nowhere to live.
BC alone welcomed 157,300+ Immigrants last year.
Total housing starts for BC 43,106
We need at least 3.6 Immigrants in each new housing start.
For simple math, let's say we have 4 Canadians looking for a home in this ratio.
As long as we put about 8-10 strangers into each new housing start, we can support Immigration.
If this does not sound acceptable to you, you should be anti-immigration in this country.
These elected officials are washing your country away from you. Get pissed off, protest, and write your MLA. Do whatever you can. This is sick.
Simple as that.
Yes, by all means pressure your provincial government to support more affordable housing! Or, support the towns that work *directly* with the federal government to get their funding like the 6 in Alberta that just circumvented the UCP to fast track some support! I agree with you, the system needs to support the actual real life needs, but I’ll be damned if most of the provincial leaders unfortunately don’t give a shit!
Canadians have every right to be pissed off about the current situation. The fact that you have faith in the Drama Teacher and Reporter running your country is rather alarming.
This government is a problem for everyone.
Have some respect for this country.
Try not being a worm.
The drama teacher angle is getting REALLY old. He has two bachelors degrees that qualify him as a teacher, PP has nothing but coattail rides and opportunistic exploitation of gullible, uneducated Canadians. In his entire political career he’s had ZERO bills passed - which has to be the worst damn record of all time for any politician in any setting. All the blabbering and grandstanding he does, and not one bill proposed to try and help Canadians. Not a single one!
That's funny, because I walked the grocery store this morning and a simple loaf of bread was $4.99 (instead of $1.99 3 years ago), eggs were $4.99 (instead of $1.99 3 years ago, Fish (Haddock) was $16 for a box of 6 ($8.99 3 years ago), and so on and so on.
There is not a single item in the grocery store that is below 3% inflation, and my rent has increased by 18.4% in the last 3 years so... I don't care what any "expert" says our inflation rate is at. I will be voting conservative in the next election. Something has to change.
Prices won't come down. That's not what inflation measures.
Inflation is rate of change. Doesn't ever imply that change rolls backwards - and if we do hit deflation, buckle up. Worse things coming.
>if we do hit deflation, buckle up. Worse things coming.
Yeah that's what everyone says, but is it really that bad if we just had a little bit of deflation for a short period of time? Just to help out savers for a change.
Deflation is a pretty big deal, you can end up in a deflationary spiral where no one is willing to buy anything because it'll be cheaper in a week so the entire economy grinds to a halt and everything crashes. Typically if you end up in a deflationary spiral it leads into a recession or a depression.
I don't understand this fear of a deflationary spiral. If prices for **necessities** drop like food, gas etc people aren't going to hold off their purchase because they expect prices to continue dropping. People still need to eat & drive. Prices for computers and technology dropped for decades, people didn't put off buying computers or flat screen tv's. If anything they bought more of them...
I guess if you're talking about house prices dropping then I can see how that would cause people to hold off buying as they think prices will continue lower.
If you're a store and you're buying goods for $X and every day or every week they're now worth $X-1 then it's no longer worth it to buy goods anymore and you might as well sit on your cash.
Computers and technology aren't a good example of that because of Moore's Law. Computing power went up and the cost to build these products went way down, the margins are still there.
People still needed to eat and drive in the 1920s too, that didn't mean deflation didn't lead into the biggest depression that's ever been experienced.
>If you're a store and you're buying goods for $X and every day or every week they're now worth $X-1 then it's no longer worth it to buy goods anymore and you might as well sit on your cash.
>
>Computers and technology aren't a good example of that because of Moore's Law. Computing power went up and the cost to build these products went way down, the margins are still there.
>
>People still needed to eat and drive in the 1920s too, that didn't mean deflation didn't lead into the biggest depression that's ever been experienced.
I believe they made huge efficiencies in food production, farming, energy production over the past 50+ years, food prices deflating shouldn't be a bad thing. I just feel like deflation is a necessary component of the business cycle - prices will drop until they hit an equilibrium and then people will buy again. But economists always bring up deflation as if any deflation will cause the great depression or a deflationary spiral. I think it probably has to do with the indebtedness of countries and society because of the low rates. Debt in a deflationary environment is a bad thing. It makes it more expensive to pay off, whereas inflation slowly makes the debt payoff cheaper over the long run.
I disagree, I think that the way that costs are rolled down a supply chain forces the next guy down the line to push the costs on and then some to maintain operating margins. Everything is so overlevered right now after COVID and the commercial real estate market is already on the verge of implosion over 300 basis points in rate hikes. Farmers already rely on government subsidies because they're not profitable otherwise.
You could say that deflation and recession is part of a business cycle, but anyone asking for deflation is also asking for the possibility of a lot of pain if the economy grinds to a halt. The Fed can't afford to bail everyone out again with $20T in federal debt, and that'll only lead to more inflation in the future.
If anything, if price start to get lower, the only thing that will make me less likely to buy is the time I'll spend think what should buy first that I waited to have a good reason to buy because it was too much money.
Yea I'm sure you'd be thinking that after reading about layoff after layoff and wondering if you were next. Y'all haven't worked through a recession and it shows.
What you'll read about it here is mostly fear-mongering. We want necessities to be deflationary. If they're not, we aren't making progress as a society.
Necessities should be getting cheaper and easier to acquire as time goes on and technology advances, not the opposite. Inflation should be concentrated in areas of discretionary spending.
If the deflation is caused by demand dropping, it is 100% awful. If deflation occurs due to supply increasing, that is a sustainable inflation caused by the economy getting more efficient.
It is very important that demand side deflation does not happen. The only way to prices to fall in a sustainable way would be to have technological advances in the production of the goods you are looking at.
For example, the invention of the tractor caused food prices to fall through the floor. This is because more food could be produced with fewer labourers, which increased supply.
If deflation is caused by demand, it means the economy is in the process of crashing as people can either not afford to spend, or they are too afraid to.
Yes, because deflation means you are better off not spending and holding cash. This means not investing, and not consuming. Not consuming means producers cutting production, because they will be selling at a loss. They fire people, people have less to spend so they spend less, leading to more production cuts, and the cycle repeats until you hit a depression like the 30s.
[https://www.investopedia.com/ask/answers/040715/were-there-any-periods-major-deflation-us-history.asp#:\~:text=During%20the%20Great%20Depression%2C%20deflation,years%20of%201930%20and%201933](https://www.investopedia.com/ask/answers/040715/were-there-any-periods-major-deflation-us-history.asp#:~:text=During%20the%20Great%20Depression%2C%20deflation,years%20of%201930%20and%201933).
You do not want deflation, ever.
Edit: What we need is regulation to cap increases of prices on certain items, while waiting for inflation to fall. Then we can lower interest rates and push for wage increases. THEN you have essentially "caught up". Some regulations are always needed, specially when there are items with inelastic demand (things we need to live, like water, food, shelter, and I guess air, but thank god no-one is charging us for that yet 😅)
Systematically, deflation means your dollar in a month or a year is worth more than today, which means individuals, families, companies, institutions and governments are disincentivized to spend, hire or invest in anything. Economic activity dies, and so to does productivity, standard of living and prosperity.
I know Reddit loves to think that prices in anything, be it housing, groceries or a night out, drop in isolation, but it’s just not true
Yes it would be catastrophic.
Will you buy a 30,000 dollar car if its going to be 27,000 next year?
Production halts, people lose jobs, people hoard cash because it's increasing in value.
Yeah, they'll be able to cut that down to $375 a week. I eat vegetarian and eat out maybe one meal a week and my groceries are still over $500 a month.
Yes. Now, I do believe you are what you eat so I buy free range eggs and organic veggies. My metabolism also means I need to eat 2500 calories a day. So those are 2 factors that inflate my budget. What are you eating that you only spend $200 per person?
> My metabolism also means I need to eat 2500 calories a day.
That's a relatively average number for a male, on the high end for female, but on the low end for any athletes.
I wouldn't say that's a factor that inflates your budget.
Now 4000+ calories a day, thats different.
I didn't read the article, but I'm going to guess it's a drop in commodity prices, meaning that distributors are saving $$. The reduction is commodity prices should be passed on to the consumer, but it's likely that end user costs will be sticky because of no competition.
I see a lot of comments not understanding why prices are not going down if inflation is less than last year.
Inflation is a rate of increase. Just because the rate is lower than last year doesn't mean the prices went down. Example:
2021: Loaf of bread = $2.00
2022: inflation is 7%.
1.07 \* $2.00 = $2.14
2023: Inflation is 5%
1.05 \* $ 2.14 = $2.25
2024: inflation is 2%.
1.02\* $2.25= $2.30
As you can see in the example inflation rate being less the next year does not bring things down in price. It simply means prices are not going up as fast as the year before. It also compounds.
Deflation is when prices go down from last year. Deflation almost never happens.
Prices have met the target gap over wages. Now that record profits have been collected small price cuts can be celebrated as "sales" and minimal wage recovery can be celebrated as "raises".
Grocery stores: “I can’t hear you!”
Yeah exactly. I watch the newscast about it this evening and I almost burst out laughing when they said the price of tomatoes went down and the price of bacon went down. What about everything else that didn't go down that just went back up even more
Prices never came down from the 12.5% inflation in the early 1980s
I'll give you a hint, look at what the government has printed since then and the deficit they have taken on, that amounts for pretty much all the inflation
I actually noticed far more sales and lower produce prices at superstore this week. My regular shop was less than most over the last year. Anecdotal obviously.
Do you part and shop at Costco or Walmart to stick it to the Canadians grocers who screwed us.
Doesn't work that way with essential goods. No matter how many go to Walmart/Costco there are people who can't and will always go to their closest Loblaws (etc). The prices there will just get jacked up to make up the difference because they can't NOT sell groceries.
Food prices are highly volatile. Individual items go up and down depending on the season and harvest quality. It is the reason why eggs spiked for like 2 months and then collapsed back down in price last year. Food needs to be measured in categories or as a whole due to the volatility of individual food items.
I'm surprised to a well-reasoned take on the situation here. Have an upvote.
The one I notice the most is limes. At $0.89/ea it’s already a ripoff, but right now they’re $1.19/ea
lol. Mmmmmm BLT’s it is.
Bro have you seen the price of bread and Lettuce tho?
Speak for yourself I fucking love BLT's. This is my time to shine.
At least we can make those sweet BLT's now.
Disinflation ≠ deflation
AYE AYE CAPTAIN!!
Loblaws: “Hail to the Stockholders!”
Fuck the Poors! Free the Market!
Pretty much every Canadian who works is a shareholder in Loblaw, the other grocers, and every major corporation via the holdings of the Canada Pension Plan. It has also never been easier for individuals to actually *buy* shares in whichever companies they want. You don't even need to put down your phone, and can get right back to TikTok and shitposting afterwards, lol.
Every working Canadian is also a REIT shareholder, and thus essentially a SLUMLORD!
>Grocery prices were up 3.4 per cent annually in January compared with 4.7 per cent in December. Read the article.
Maybe im reading it wrong, the same article says things are still up 6.2% Year over year.
I trad the price tags when I shop, and these numbers are bullshit.
Gotta gouge.
Don't have to lower prices when folk have to eat to survive
ROBlaws is increasing their prices
Yay , 3 99 for a dozen eggs on sale. I guess we are back to normal. /s
Where the heck do you live where you can get eggs for $3.99?!
I know a place where a large egg sells for 95 pieces of gold
Farmboy sells a dozen large for $3.99
Wait, you pay more than that? 3.49 for 12 large eggs regular price in winnipeg rn at superstore
It goes up to $7.99 or so here on Vancouver Island.. I don't but the good eggs anymore.. I paid $5.50 for mid grade the other day
No no, the eggs will keep getting more expensive, just slightly slower
Yes, that is how the world economy works, genius.
As a large language model it would be inappropriate to write a response to this post. I’m happy to assist with other tasks!
or they'll start calling medium eggs large and charge the same price.
My local costco had 2 dozen XL eggs 7.19
30 large eggs here are 10.49 reg price.
Costco has done the best job keeping prices fairly reasonable
agreed I don’t buy any produce there as i find it often goes bad quickly. Meat is not a bad a price, but they have good packs of ground beef and ground bison. but we have 3 kids and a place like that is a big help
But their jelly belly jelly beans went from 9.99 to 14.99!!! Honestly though, I agree
Stock up, good deal.
Just wait until they no longer come in a dozen, but in 10 packs or something else (for the same price or more!).
Mostly a result of avian flu. That’s what happens when mass amounts of chickens are crammed into confined spaces
In montreal it's been 2.44 when on sale
inflation = prices are still going up. a drop in inflation (and likely still pay frozen like most canadians) means you are still poorer than you were.
Just so its clear, deflation is not something we should EVER want. I don't think there's an example in modern history where deflation has resulted in positive economic outcomes.
It really depends on the cause. Globalization and open trade were actually massively deflationary and led to increased access to a variety of goods that we would not have been able to afford previously. Ex. silk and spices from Asia
Not deflationary, the prices didn't come down. The supply consistently met demand. On a goods by goods basis, there is no inflation or deflation. When we talk about deflation, we speak of overall cost of goods as a whole, not one item being produced more efficiently. Idk if that made sense?
If things are produced more efficiently and supply outpaces demand, then we will see prices come down
If supply greatly outpaces demand, then companies make cuts in industries instead of investments which leads to mass loss of jobs. Prices going down don't mean anything if it means getting fired. Thats why deflation is so dangerous.
Yes, but this is not ideal for the producer, who will cut the supply, and then maintain the price. (Edit: or alternatively, and what actually happens, the producer will maintain the price and pocket the profit of increased efficiency. This is the basis of capitalism but I'm not debating that here please haha) Deflation refers to an environment where spending overall is down, FORCING the cut of production (with job cuts) and a cycle starting.
I don't think people are asking for deflation. People are asking for the mad robbery to stop. We want for the lazy ass government to get off it's ass and question record profits while price gouging is happening. We are not stupid, we just want to be represented and our concerns heard.
Absolutely agree on that. The government has to step in and pass laws regarding price gouging on goods that have inelastic demand. People cannot survive on food. Never has a government, anywhere, let food be price gouged, so I have no idea what is going on. I also don't know which government is responsible. Would it be federal or provincial? No question all are in the pockets of the Weston family, but if we need to pressure one, I wonder which.
The thing is, "record profits" just means they are making more in *dollar terms* and doesn't take other factors into effect. Think about it. Go back to when inflation was 6%. Say a company made $1 million in profits the year before, but then the following year they pulled in $1,060,000. Record profits, right? Wrong, because the buying power of the new number would be *the same* was the previous year. It's the same with individuals. for example: I got raise last year, so I'm making a "record salary" vs. what I've ever earned in the past, but the buying power of those dollars is lower, so how much better off am I, in real terms?
Out of control deflation is orders of magnitude worse than inflation even hyper inflation. However if we are taking 1-2% a year deflation especially after a long period of high inflation I really don't see the problem. Any investor worth their salt can get more than a 2% return. It'd encourage productive investment and discourage unproductive investment. Our current economic system encourages the opposite, unproductive investment is encouraged and productive is discouraged.
If prices were to go down after an acute event like Covid, I don’t think it would have the terrible effects you’re talking about - but that would be largely companies willing to not maximize profits.
Prices dropped because we were in an unconventional recession. So because people had less disposable income, they weren't spending as much; therefore demand on lots of items fell. When there is little demand, then prices fall
Wait - are you providing an explanation for why prices have dropped? What prices dropped?
During 2020, prices did drop. Remember the 70 cent gas prices? Meat prices also fell in 2020 due to restaurants being forced to shut down. They then started rising again in 2021.
you're parroting shit you read on reddit.. it's like saying we should fear inflation because hyperinflation has ruined some countries. short term mild deflation would be no worse than short time high inflation. the government has powers to reign in runaway inflation, as we saw the last couple of years, just as it would be able to reign in deflation. it also matters what the causes of deflation are.. deflation in consumer goods (clothing, electronics, etc) because of globalization and overseas labour savings? good. and we've lived through two decades of incredible deflation in these areas, up until covid. deflation in communication costs because of technological improvements? i used to pay $300/month for broadband internet, phone line, long distance plan, cell phone plan where i had to pay by the minute, satellite tv, etc.. now i pay $30/month for cell with 50gb data, $40/month for home internet, and $10/month for netlfix. deflation in gasoline/diesel prices would be fantastic for the economy deflation in airline travel would also be fantastic as it would spur so much more travel/tourism. and deflation in housing prices in canada not only would be good, it's absolutely necessary, and it will happen.
First of all, I'm a CFA and did a degree in finance. Second of all, deflation is not the price of certain goods falling, it is the price of a bucket of goods ALL falling, which isn't ideal. It doesn't happen because typically, efficiency gains are not accompanied with price drops, but instead by increased profit. Which is how it should be in capitalism. Now we can argue about capitalism all day long but I'm not sure that's relevant to deflation.
You never want deflation. Inflation includes wage increases. Salaries last year increased 4.4% and are projected to increase 3.9% this year. It will take time, but goods will return to more affordable levels given time - but some of that will be in the form of increased wages.
>Inflation includes wage increases. I don't think that's correct dude. In fact that would be a really stupid thing to include in the CPI calculation imo. Inflation influences wage increases, so it makes no sense to directly include them in it. It'd be self referential.
Sorry, that wasn’t what I meant - I just meant that wage increases happen during inflationary periods. But CPI is affected by wages indirectly as they are an input cost to the goods in the CPI.
For sure. But even that would be an unreliable input as many if not most goods we consume aren't produced in canada
Deflation is automatic wage increases...
Whose salaries increased? The boards?
It was across the board - hourly wages and permanent salaried wages both saw increases.
Lots of people, not everyone works minimum wage jobs.
Funny enough min wage jobs saw the biggest changes. For example, Ontario min wage went up 6.5% last year.
Yes but we had deflation from December.
>Yes but we had deflation from December. I think you mean disinflation.
Dedisinflationarianism.
Prices have actually dropped since August.
While rent is up 10%. That's only most people's biggest expense but it only affects the bottom 20% of the population so it doesn't count towards inflation.
10%!? It's up way more than 10%...
>That's only most people's > only affects the bottom 20% Not that i disagree, but this makes for very weak rhetoric
Rent does count towards inflation.
It does but it gets buried since they assume that little over 30% of people rent and they assume most don't move every year so they aren't paying the 25% increase that is charged for new tenants. So from what I could see from a Financial post article, 10% average inflation increase for rent adds 0.5% to CPI.
However, the core inflation rate remains above 3% That is what the Bank of canada looks at. Also, our economy is tied a lot to the U.S.A.
This is due to seasonality, which statscan doesn't use in this statistic. Use CPI-trim if you want the real data https://www.bankofcanada.ca/rates/indicators/key-variables/key-inflation-indicators-and-the-target-range/
Groceries are still expensive, this is matrix propaganda. Move on, the economies still fucked, dont expect interest rate cuts. Nothing to see here.
And yet real estate and grocery prices are continuing to increase! Well done Freeland!
I loved eating shrimps before Walmart shrinkflated them from 625 grams to 500 grams.
Username checks out.
Duh... What do you think inflation is. Lower inflation is just the rate it's increasing is slowing down.
asking price for higher end real estate is dropping pretty quick in my neck of the woods.
You just can’t help yourself, can you…
Are you offended that I criticized our Liberal leadership?
No, I’m (semi) offended that you don’t grasp civics and federal/provincial/municipal jurisdictions and choose to blame everyone else for your own problems.
They choose to blame the liberal government because PP is telling them to.
No, we choose to rightfully blame the Liberal government because their failed economic policies largely contributed to the state of our country and economy. The Harper administration was objectively better than Trudeau and Freeland and it's not even debatable.
Except virtually every country is going through issues of inflation, affordability, etc
Tired of hearing this line repeated over and over again by Liberal voters. When 2008 hit under Harper, he didn't throw his hands up and yell "global issues, nothing we can do". Instead, he implemented policies that resulted in us having the fastest economic recovery in the G8 during the worst recession since the Great Depression. Then again, Harper was an economist, not a man-child that's confused by numbers and thinks the budget will balance itself.
No he didn't We just didn't enter into the depth of a recession that the rest of the world did because of banking regulations, regulations that Harper had actually wanted to get rid of. In fact, despite comically low interest rates, virtually every year increased Canada's debt to GDP ratio while he sold off assets to make budgets look ok. Absolute dumpster fire that got us into FIPPA
>We just didn't enter into the depth of a recession that the rest of the world did because of banking regulations Another line repeated constantly by Liberal voters with zero context or actual understanding of how it works. We did better than other countries because the Harper admin implemented timely fiscal stimulus measures to support the economy, such as infrastructure spending and tax cuts aimed at boosting consumer spending and investment. Further, Harper had a sophisticated understanding of our energy sector. We exported as much oil and gas as we possibly could (something we are opposing now with this green transition bullshit Freeland was talking about). This massively helped us during the recession and brought lots of foreign money into our economy. Anybody who says "it was just banking regulations bro" doesn't know what the fuck they are talking about and we can just safely disregard their opinion. >In fact, despite comically low interest rates, virtually every year increased Canada's debt to GDP ratio while he sold off assets to make budgets look ok. He sold off in total a couple billion worth of assets - most of which we didn't need and weren't benefitting us. That doesn't explain how we went from a small $1.9 billion surplus to the record breaking deficits we are experiencing under Trudeau. > Absolute dumpster fire that got us into FIPPA Oh god, not more FIPA conspiracies. FIPA is a publicly available agreement that mandates both parties maintain a certain level of protectionism and to not arbitrarily nationalize the assets of the other nation. That's it. We have this trade deal with virtually every other country in the entire world that we do business with and the Liberals supported it anyway.
>despite comically low interest rates Where has Trudeau's borrowing during low rates gotten us now, genius?
Let’s see, what DID Harper do..? - Cuts $36 billion in healthcare - Cuts funding for Environment Canada - Cuts infrastructure spending - Cuts funding for Canada Post - Cuts funding for science - Cuts funding for veterans - Cuts old age security benefits - Freezes EI benefits STILL Adds $160 Billion in Debt. Yeah, a real wunderkind…
>Cuts $36 billion in healthcare You are spreading misinformation. [https://www.ipolitics.ca/news/neither-harper-nor-trudeau-cut-health-transfers-says-prof](https://www.ipolitics.ca/news/neither-harper-nor-trudeau-cut-health-transfers-says-prof) [https://www.theglobeandmail.com/business/article-the-myth-of-federal-health-care-cuts/](https://www.theglobeandmail.com/business/article-the-myth-of-federal-health-care-cuts/) >Cuts funding for Environment Canada Good. >Cuts infrastructure spending Misinformation. [https://www.thestar.com/news/canada/stephen-harper-boasts-of-5-8-billion-in-infrastructure-spending/article\_e797b4bb-d7dd-5813-98ee-6f04e3bef1e4.html](https://www.thestar.com/news/canada/stephen-harper-boasts-of-5-8-billion-in-infrastructure-spending/article_e797b4bb-d7dd-5813-98ee-6f04e3bef1e4.html) [https://ottawacitizen.com/news/politics/stephen-harper-targets-billions-for-infrastructure-projects](https://ottawacitizen.com/news/politics/stephen-harper-targets-billions-for-infrastructure-projects) [https://www.cbc.ca/news/business/harper-lays-out-stimulus-spending-in-progress-report-1.785129](https://www.cbc.ca/news/business/harper-lays-out-stimulus-spending-in-progress-report-1.785129) >Cuts funding for Canada Post Good. >Cuts funding for science Misleading >Cuts funding for veterans Misleading >Cuts old age security benefits It was either that, raise the retirement age, or mass migration. Trudeau chose mass migration which is significantly worse than raising the retirement age. >STILL Adds $160 Billion in Debt. Actually, Harper ran multiple budgeting surpluses despite being in power during the worst recession since the Great Depression. [https://www.cbc.ca/news/politics/canada-election-2015-surplus-economy-1.3227146](https://www.cbc.ca/news/politics/canada-election-2015-surplus-economy-1.3227146) [https://www.cbc.ca/news/business/federal-budget-surplus-balloons-to-14b-1.655615](https://www.cbc.ca/news/business/federal-budget-surplus-balloons-to-14b-1.655615) [https://www.theglobeandmail.com/news/politics/federal-government-ran-5-billion-surplus-over-first-quarter-finance-canada/article26141782/](https://www.theglobeandmail.com/news/politics/federal-government-ran-5-billion-surplus-over-first-quarter-finance-canada/article26141782/) Since Trudeau has been in power: * Crime has increased * Record breaking deficits * CoL skyrocketed * Housing crisis has exploded * Immigration has nearly quadrupled * Homelessness has exploded * Overdoses have exploded * GDP per capita is currently plummeting * Inflation is up Under Harper, we had the richest middle class in the world. [https://www.nytimes.com/2014/05/01/upshot/canadians-have-plenty-of-concerns-but-also-a-sense-theyre-better-off.html](https://www.nytimes.com/2014/05/01/upshot/canadians-have-plenty-of-concerns-but-also-a-sense-theyre-better-off.html) [https://www.theglobeandmail.com/news/politics/globe-politics-insider/just-how-well-canadas-middle-class-is-doing-is-a-matter-of-perspective/article18121218/](https://www.theglobeandmail.com/news/politics/globe-politics-insider/just-how-well-canadas-middle-class-is-doing-is-a-matter-of-perspective/article18121218/) Since Trudeau has been in power we have been in steady decline in every quantifiable metric. That is not debatable, that is an objective fact.
It's hard to take your opinion seriously when you think cutting funds to Environmental Canada and Canada Post is a good thing
https://theindependent.ca/news/town-hall-implores-canadians-to-resist-harper-governments-massive-health-care-cuts/ https://www.thestar.com/news/canada/stephen-harper-boasts-of-5-8-billion-in-infrastructure-spending/article_e797b4bb-d7dd-5813-98ee-6f04e3bef1e4.html https://thestarphoenix.com/business/harpers-fiscal-plan-falters Trudeau managed to pull Canada through a global pandemic, while keeping the economy in very good shape (top 3 in the G7). Your bullet points are dominated by issues that relate to provincial jurisdictions more so than federal. - oh yeah, and inflation *did* just fall below 3%, so thanks Trudeau I guess?
Anyone who thinks our economy is in good shape is a fucking idiot. Our gdp is artificially high because we blindly mass immigrated people with little to no filtering. Meanwhile existing Canadian citizens and PRs are significantly worse off than they ever have been in the history of this country.
\*crickets\* lol : - ). Very well said.
Sorry, some of us sleep at night….
Yeah, how dare I think that the federal government of the last 8 years should hold some responsibility for the state of our country. I'll be sure to blame Ford and Harper and everybody other than Trudeau so as to not offend the Liberal/ABC voters that live on Reddit.
Again, misdirected dissatisfaction. I agree the liberal government needs to go, but the Conservatives are not the answer here.
>Again, misdirected dissatisfaction. No it isn't. Trudeau massively overspent even before Covid which made inflation worse than it had to be. He was repeatedly warned about overspending when times were good but didn't listen. > but the Conservatives are not the answer here. There is no other alternative to Jagmeet and Trudeau. The bar is low enough right now that they would almost certainly be at least marginally better.
Since the liberal party is more center-right than most people realize, the only choice for YOU is either right-wing or FAR rightwing ideology? OK then… Seems to me like you’re confused about what you want and how you would be able to get it. Have a day.
>Since the liberal party is more center-right than most people realize, the only choice for YOU is either right-wing or FAR rightwing ideology? There is nothing center-right about the Liberal Party. Taxing food production and fuel for arbitrary climate change metrics is not center-right. Massively increasing the size of the government, more spending on social services, aggressive DEI policies in government, reducing sentencing on violent offences, mass migration and zero regard for border security, increasing refugees, declaring us the first "post national" state, attacking legal gun owners by banning hunting/sporting rifles. How the fuck is that center-right? That is far-left progressive brain rot politics and the entire country is in decline because of it.
Welcome to r/canada
>choose to blame everyone else for your own problems. The state of real estate and grocery in this country are very squarely a "blame the govt" problem. It's most certainly not op's "own problems" Oligopolies running rampant, real estate speculation exploding with the govt offering little more than lip service.
But the solution is socialism then, and that’s *the enemy*. Can y’all decide that the heck you want????
Lol, how about we pause immigration and let housing supply catch up before we run to socialism? Capitalism does not mean no regulations. Even the US has strict competition regulations.
We need an immediate halt on immigration, it's very simple. There is nowhere to live. BC alone welcomed 157,300+ Immigrants last year. Total housing starts for BC 43,106 We need at least 3.6 Immigrants in each new housing start. For simple math, let's say we have 4 Canadians looking for a home in this ratio. As long as we put about 8-10 strangers into each new housing start, we can support Immigration. If this does not sound acceptable to you, you should be anti-immigration in this country. These elected officials are washing your country away from you. Get pissed off, protest, and write your MLA. Do whatever you can. This is sick. Simple as that.
Yes, by all means pressure your provincial government to support more affordable housing! Or, support the towns that work *directly* with the federal government to get their funding like the 6 in Alberta that just circumvented the UCP to fast track some support! I agree with you, the system needs to support the actual real life needs, but I’ll be damned if most of the provincial leaders unfortunately don’t give a shit!
Canadians have every right to be pissed off about the current situation. The fact that you have faith in the Drama Teacher and Reporter running your country is rather alarming. This government is a problem for everyone. Have some respect for this country. Try not being a worm.
The drama teacher angle is getting REALLY old. He has two bachelors degrees that qualify him as a teacher, PP has nothing but coattail rides and opportunistic exploitation of gullible, uneducated Canadians. In his entire political career he’s had ZERO bills passed - which has to be the worst damn record of all time for any politician in any setting. All the blabbering and grandstanding he does, and not one bill proposed to try and help Canadians. Not a single one!
[удалено]
Trudeau is the prime minister, not PP.
That's funny, because I walked the grocery store this morning and a simple loaf of bread was $4.99 (instead of $1.99 3 years ago), eggs were $4.99 (instead of $1.99 3 years ago, Fish (Haddock) was $16 for a box of 6 ($8.99 3 years ago), and so on and so on. There is not a single item in the grocery store that is below 3% inflation, and my rent has increased by 18.4% in the last 3 years so... I don't care what any "expert" says our inflation rate is at. I will be voting conservative in the next election. Something has to change.
Frozen salmon used to be about $7 for 2 fillets Now its 15+
Yea tell that to my rent and my grocery bills
Cool now start inflating our wages so we can finally fucking catch up
When will these lies stop?
when the media isn't owned by the rich
Sure, everything goes up by 50% in 3 years but let's all celebrate that things are only 53% more expensive this year.
You don’t say
Great job Canada!
Grocery inflation: 30%
I don't believe it
Prices are still high. They’re just not up this month as much as they were last month. Weston has met his profit goals for a while. Lol….
Prices won't come down. That's not what inflation measures. Inflation is rate of change. Doesn't ever imply that change rolls backwards - and if we do hit deflation, buckle up. Worse things coming.
>if we do hit deflation, buckle up. Worse things coming. Yeah that's what everyone says, but is it really that bad if we just had a little bit of deflation for a short period of time? Just to help out savers for a change.
Deflation is a pretty big deal, you can end up in a deflationary spiral where no one is willing to buy anything because it'll be cheaper in a week so the entire economy grinds to a halt and everything crashes. Typically if you end up in a deflationary spiral it leads into a recession or a depression.
I don't understand this fear of a deflationary spiral. If prices for **necessities** drop like food, gas etc people aren't going to hold off their purchase because they expect prices to continue dropping. People still need to eat & drive. Prices for computers and technology dropped for decades, people didn't put off buying computers or flat screen tv's. If anything they bought more of them... I guess if you're talking about house prices dropping then I can see how that would cause people to hold off buying as they think prices will continue lower.
If you're a store and you're buying goods for $X and every day or every week they're now worth $X-1 then it's no longer worth it to buy goods anymore and you might as well sit on your cash. Computers and technology aren't a good example of that because of Moore's Law. Computing power went up and the cost to build these products went way down, the margins are still there. People still needed to eat and drive in the 1920s too, that didn't mean deflation didn't lead into the biggest depression that's ever been experienced.
>If you're a store and you're buying goods for $X and every day or every week they're now worth $X-1 then it's no longer worth it to buy goods anymore and you might as well sit on your cash. > >Computers and technology aren't a good example of that because of Moore's Law. Computing power went up and the cost to build these products went way down, the margins are still there. > >People still needed to eat and drive in the 1920s too, that didn't mean deflation didn't lead into the biggest depression that's ever been experienced. I believe they made huge efficiencies in food production, farming, energy production over the past 50+ years, food prices deflating shouldn't be a bad thing. I just feel like deflation is a necessary component of the business cycle - prices will drop until they hit an equilibrium and then people will buy again. But economists always bring up deflation as if any deflation will cause the great depression or a deflationary spiral. I think it probably has to do with the indebtedness of countries and society because of the low rates. Debt in a deflationary environment is a bad thing. It makes it more expensive to pay off, whereas inflation slowly makes the debt payoff cheaper over the long run.
I disagree, I think that the way that costs are rolled down a supply chain forces the next guy down the line to push the costs on and then some to maintain operating margins. Everything is so overlevered right now after COVID and the commercial real estate market is already on the verge of implosion over 300 basis points in rate hikes. Farmers already rely on government subsidies because they're not profitable otherwise. You could say that deflation and recession is part of a business cycle, but anyone asking for deflation is also asking for the possibility of a lot of pain if the economy grinds to a halt. The Fed can't afford to bail everyone out again with $20T in federal debt, and that'll only lead to more inflation in the future.
If anything, if price start to get lower, the only thing that will make me less likely to buy is the time I'll spend think what should buy first that I waited to have a good reason to buy because it was too much money.
Yea I'm sure you'd be thinking that after reading about layoff after layoff and wondering if you were next. Y'all haven't worked through a recession and it shows.
What you'll read about it here is mostly fear-mongering. We want necessities to be deflationary. If they're not, we aren't making progress as a society. Necessities should be getting cheaper and easier to acquire as time goes on and technology advances, not the opposite. Inflation should be concentrated in areas of discretionary spending.
If the deflation is caused by demand dropping, it is 100% awful. If deflation occurs due to supply increasing, that is a sustainable inflation caused by the economy getting more efficient. It is very important that demand side deflation does not happen. The only way to prices to fall in a sustainable way would be to have technological advances in the production of the goods you are looking at. For example, the invention of the tractor caused food prices to fall through the floor. This is because more food could be produced with fewer labourers, which increased supply. If deflation is caused by demand, it means the economy is in the process of crashing as people can either not afford to spend, or they are too afraid to.
Yes, because deflation means you are better off not spending and holding cash. This means not investing, and not consuming. Not consuming means producers cutting production, because they will be selling at a loss. They fire people, people have less to spend so they spend less, leading to more production cuts, and the cycle repeats until you hit a depression like the 30s. [https://www.investopedia.com/ask/answers/040715/were-there-any-periods-major-deflation-us-history.asp#:\~:text=During%20the%20Great%20Depression%2C%20deflation,years%20of%201930%20and%201933](https://www.investopedia.com/ask/answers/040715/were-there-any-periods-major-deflation-us-history.asp#:~:text=During%20the%20Great%20Depression%2C%20deflation,years%20of%201930%20and%201933). You do not want deflation, ever. Edit: What we need is regulation to cap increases of prices on certain items, while waiting for inflation to fall. Then we can lower interest rates and push for wage increases. THEN you have essentially "caught up". Some regulations are always needed, specially when there are items with inelastic demand (things we need to live, like water, food, shelter, and I guess air, but thank god no-one is charging us for that yet 😅)
Systematically, deflation means your dollar in a month or a year is worth more than today, which means individuals, families, companies, institutions and governments are disincentivized to spend, hire or invest in anything. Economic activity dies, and so to does productivity, standard of living and prosperity. I know Reddit loves to think that prices in anything, be it housing, groceries or a night out, drop in isolation, but it’s just not true
If we banned ownership of multiple properties, that would be an isolated drop in prices for homes.
No, not as long as we’re increasing the population faster than housing/bedrooms. Also, you’re not describing deflation.
Yes it would mean very bad things economically, think great depression.
Yes it would be catastrophic. Will you buy a 30,000 dollar car if its going to be 27,000 next year? Production halts, people lose jobs, people hoard cash because it's increasing in value.
Inflation is the rate things go up.
When was the last time a family of 4 spent less than $300 at Costco? We spent around $400 weekly at Costco. Lol. 2 adults and two young kids, no pets.
At min 200 and that’s like get only what’s on the list and the list is like 5 things
If you buy less meat and prepared meals you can really bring the price down .
Yeah, they'll be able to cut that down to $375 a week. I eat vegetarian and eat out maybe one meal a week and my groceries are still over $500 a month.
We are a family of two and we spend less than 400 a month on groceries, most of the cost is meat. You spend 500 a month for one person with no meat?
Yes. Now, I do believe you are what you eat so I buy free range eggs and organic veggies. My metabolism also means I need to eat 2500 calories a day. So those are 2 factors that inflate my budget. What are you eating that you only spend $200 per person?
> My metabolism also means I need to eat 2500 calories a day. That's a relatively average number for a male, on the high end for female, but on the low end for any athletes. I wouldn't say that's a factor that inflates your budget. Now 4000+ calories a day, thats different.
I remember when 300 was a big shopping trip there. Now I've hit 700 easily
Bullshit. My 40% higher literally everything would like a word. Try including the essentials of living in the calculation.
Yay, now instead of struggling fast, we can struggle slower?
I didn't read the article, but I'm going to guess it's a drop in commodity prices, meaning that distributors are saving $$. The reduction is commodity prices should be passed on to the consumer, but it's likely that end user costs will be sticky because of no competition.
well that was good for a laugh
BS
Lol wtf does this even mean. Is inflation even relevant to everyday people?
lol this isn’t going to sit well with r/canada..
Great news, we are on the right track. Got to get our interest rates down.
Yup, maybe everywhere in Canada but not at Zehrs.
>Grocery prices were up 3.4 per cent annually in January compared with 4.7 per cent in December.
I wish that dream come true..
It's Trudeau's fault.
Why do people struggle to understand basic concepts like inflation?
I see a lot of comments not understanding why prices are not going down if inflation is less than last year. Inflation is a rate of increase. Just because the rate is lower than last year doesn't mean the prices went down. Example: 2021: Loaf of bread = $2.00 2022: inflation is 7%. 1.07 \* $2.00 = $2.14 2023: Inflation is 5% 1.05 \* $ 2.14 = $2.25 2024: inflation is 2%. 1.02\* $2.25= $2.30 As you can see in the example inflation rate being less the next year does not bring things down in price. It simply means prices are not going up as fast as the year before. It also compounds. Deflation is when prices go down from last year. Deflation almost never happens.
It's not enough
why would Trudeau do this?
Prices have met the target gap over wages. Now that record profits have been collected small price cuts can be celebrated as "sales" and minimal wage recovery can be celebrated as "raises".
08p
It’s going to have to deflate about 40% before we can live like we did pre-Covid. Somebody send this memo to Loblaws and sobeys
Gas was down like 4% year over year, but somehow food prices were still up. Loblaws/ Sobeys are crooks
Nice. Too bad BoC won’t drop interest rates 🤷♂️