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Food, gas prices push inflation rate higher
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It will be interesting to see if the government increases by the same amount the Canada Pension checks. In the past few years CPP increases has been less then the consumer price index(CPI) which is supposed to be the benchmark for the annual increases.
Frank in NS
Food, gas prices push inflation rate higher
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Food, gas prices push inflation rate higher
CTVNews.ca Staff
Date: Fri. Oct. 21 2011 6:55 PM ET
Canada's inflation rate edged up a notch last month, as Canadians paid more for most things last month, Statistics Canada reported Friday.
Consumer prices rose 3.2 per cent in September, while the country's annual core inflation shot up three-tenths of a point to 2.2 per cent.
Statistics Canada says all eight major components it tracks -- from housing to clothing to recreation costs -- were higher last month on an annual basis.
As has been the case so often before, the major drivers of the rising inflation rate last month were gasoline and food.
The cost of gas was up 22.7 per cent over last year, while prices for fuel oil rose 27.4 per cent and prices for natural gas fell 4.7 per cent.
Prices for food were 4.3 per cent from a year ago, overall. Consumers paid more for meat, with prices up 6.1 per cent; bakery products, which rose 7.2 per cent; and fresh vegetables, which soared 13.0 per cent.
Statistics Canada notes that the country's underlying core inflation increased to its highest level in almost three years in September.
The core inflation rate excludes volatile items, such as gasoline, and is considered a more accurate reflection of inflation trends.
The annual core rate rose three-tenths of a point to 2.2 per cent -- the largest year-over-year gain since December 2008. It's the first time it's been above the Bank of Canada's two per cent target since February 2010.
Commenting on the numbers, David Madani of the research firm Capital Economic predicted in a note to clients that the consumer price index will continue to rise "somewhat above" the Bank of Canada's expectations, and that inflation on food prices will reach at least six per cent by next year.
Still, while the jump in core inflation will likely raise some eyebrows at the central bank, few expect bank governor Mark Carney to raise interest rates next week.
"We still believe the Bank will refrain from removing any further monetary stimulus for the foreseeable future," wrote Madani.
Some even expect Carney to cut rates. But in a note to his clients, Bank of Montreal's Doug Porter says the "stickiness" of inflation makes this unlikely.
"While this result doesn't completely rule out rate cuts, it relegates them to only the most extreme circumstance," he said in the note.
"Moreover, if core stays close to this level -- let alone rises further -- the Bank of Canada may return to the tightening wheel sooner than most now expect, especially if financial markets stabilize."
The central bank has held its policy rate at one per cent for over a year and Carney has made it clear he is remaining vigilant for signs of weakness of the economy, as well as keeping an eye on the European debt crisis and the potential for another global recession.
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If 5000 jobs can be so vital to the nation's economy, they should get what they ask for in bargaining. Simple.
bob.
Raitt urges MPs to support 'expedited' back-to-work bill
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Mark - Calgary
said
Go and Occupy
said
Our government should be making regulations to help us live our lives, and not struggle to have our basic needs.... instead they spend their time protecting the oil giants, helping them stuff their pockets.
It's time we all speak up... It's time for a revolution. It's time our government was accountable to us, and not the billionaires of this world.
Stretched thin in ottawa
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Rose
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gary hoodle
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Maury Finkelstein
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Harper to blame
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Craig from NS
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Sober
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JP
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Gut
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Judy in B.C.
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Jeremy
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Lindsay
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Evidently this is allowed and we are led to believe higher energy prices is good for our economy.
This does not and will not help most people as it will erode disposable incomes. Most people need gasoline and groceries, but they will have to cut back on other expenses like dining out and vacationing , as well as holding off on other discretionary spending. The other fallout from higher pump prices is higher taxes, as most cities have fleet vehicles and equipment to fuel. Higher energy prices will not lead the economy out of recession.
Bob in Calgary
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CMQ
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Robert B
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KJ in Kingston Ontario
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M
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me
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lc
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Rob
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NR
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We Know Why For Sure - Ottawa
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Dave in Sarnia
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Barry Atkinson
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Maggie Scott
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eddytoronto
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Wendy
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Time for change
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FOOL ME
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Frank in NS
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Frank Buchan
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