Quote:
Originally Posted by calgarygeologist
Apparently without mortgage inflation the rate would be a little under 2%. I don't expect the BoC to be done adjusting rates yet though.
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I think I posted before (maybe not though), that without the rate hikes this year the inflation would be at their target already. I think they've gone too far already, but I suppose time will tell.
Quote:
Originally Posted by Azure
In other words if we actually had more competition in the food sector, the BoC wouldn't have needed to blow up the economy with repeated rate increases and we'd likely see lower food prices and lower mortgage inflation resulting in overall lower inflation?
I mean lower cell phone prices have pushed inflation down this past month.
Shocker I know.
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The food inflation "story" is almost just politics at this point. Competition is not the issue, as the grocers are not making enormous profits based on this. I've posted the evidence a number of times...they've made money on other items and while the grocery costs have risen, so have the inputs. Profit margins in that subsection have been flat.