RE:Canada’s true inflation rate Can't really include residential real estate in these numbers.
Serviced land to build new homes is not something you can manufacture more of.
There's not much left to be had in the surrounding area's of the most populated cities so naturally the values are just going to keep going higher. Not enough supply for the growing pop.
Higher interest rates are certainly slowing down home sales volumes but prices have not come down very much. At least not yet. So they build condo's instead.
The groceries are different. With the prices you guys are quoting here, I would agree that these posted inflation numbers don't add up.
However, don't you think raising interest rates, raises the costs of doing business?
Whether it's the farmers or the company that bakes the bread, they all have business loans.
If their costs go up, then their selling prices need to go up.
You have to pass those increases on.
So how is raising the interest rates going to bring down the price of bread?
Torontojay wrote: If one wants to know the real inflation rate instead of the bogus numbers the government spits out, all you have to do is figure out how much homes have risen in the last decade and you get a "true" inflation rate. Home prices tend to follow wages which tends to track inflation. This is a better indication of the decline in purchasing power even well before the pandemic. We've been lied to for many years and they continue to get away with telling people that everything is just fine.
Not only is the inflation figure an outright lie, the packaging at the grocery stores have been shrinking too. We have companies increasing prices and shrinking the packaging simultaneously. How do you think StatsCan handles that kind of information? How convenient for statisticians to add used car prices in the basket of CPI goods just to capture car prices on its way down. They consistently change the cpi basket to make the headline numbers appear better than they really are.
Anyway, all one needs to do is figure out how much home prices in Canada rise every year and now you've captured the true inflation rate.
My rant for the day.