We Can’t Trust What The Government Says About The Inflation Rate

DM

Does anyone really believe inflation is only 1.1%? Here’s a simple question: The government claims the inflation rate is only 1.1%. Do you believe this? I’m going to go out on a limb, and guess the answer is probably “no.” Everyone is seeing the cost of living rise, amid new taxes, excessive money creation by the central bank, massive government spending, and of course the housing market – based heavily on foreign speculation that is pricing Canadians out of our own cities. Talk to anyone, and they’ll tell you the cost of food has gone up dramatically, seemingly rising month after month after month without end. Does $200 in groceries feel like it goes as far as it used to? First of all, as they admit, the weighting of the consumer price index hasn’t been updated to account for the dramatic shifts in household purchasing: “Shifts in household purchasing patterns have implications for the basket weights used to measure consumer price inflation. A fixed-basket price index, such as the official CPI, can only reflect such changes when basket weights are updated. The official CPI basket weights will be updated with the release of the June CPI, on July 28, 2021.

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