I'm curious why anyone thinks that the carbon tax inordinately contributes to inflation by compounding beyond its actual cost in a way that normal commodity price fluctuations do not.
As history has clearly demonstrated, we can have 10-20% energy price inflation while having 2-3% food price inflation. Which makes sense, because while energy is one of the things that can drive volatility in food prices, as an input cost it still only represents a portion of the final cost. Given that (which is an inarguable fact), why would a carbon tax that adds a few percent to the price of energy each year be responsible for high food inflation?
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