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Originally Posted by Samonadreau
Are you talking about the Bank of Canada's 0.1 to 0.15% number that only factored in Fuel and natural gas (and other fossil fuels), but didnt factor in the secondary effects such as higher cost to produce and transport food and goods that would compound it. And higher costs of some services.
Bank of Canada has been criticized, for discluding compounding effects of it. Other economists have estimated it around .2% which is 10% of the Bank of Canada's target of 2%. That's not insignificant.
Also Carbon tax is slated to increase year over year and will be more than double what it is now by 2030. That will make it much more significant. say it goes up to about 0.4% total direct and indirect inflation by 2030. That's 20% of the target inflation.
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How does the Carbon tax cause inflation every year if the rate was unchanged? Like if it’s $40 per tonne one year and $40 per tonne the next year then there should be no inflation caused by Carbon tax.