Skip navigation

 Login or Register | Member Centre

Gasoline cost pushes up prices

HEATHER SCOFFIELD

Globe and Mail Update

Latest comment posted at 3:39 PM EST 23/07/08

Consumer Price Index for June comes in at a higher than expected 3.1 per cent; increase is largest since September, 2005 ...Read the full article

This conversation is closed

  1. handy andy from burlington, Canada writes: The only 'unexpected' thing is that anyone would consider it unexpexted ! To anyone shopping the last few weeks it is blindingly obvious. The other stupidity of these stats is to consider gas prices as not part of 'core' inflation. With cars today being as central to our lives as they are, why would gas prices not be 'core' ?
  2. - Nostradamus from Halifax, Canada writes: This is just the beginning. World oil production has peaked and will soon go into terminal decline. Steadily rising oil prices will cause permanent inflation, stagnation and recession. Gasoline prices will rise to $5 a liter. There will shortages and rationing:

    http://youtube.com/watch?v=D7fFffo3XE8

    The world as we know it is coming to an end:

    http://youtube.com/watch?v=Jqg3P3wOV60

    ===
  3. Michel Frechette from Kapuskasing, Canada writes: Because if gas were to be included, the core inflation rate would be higher, and then interest rates would have to rise. It is a nice hole that we've dug for ourselves. We can never win this game unless we stop consuming completely and even this wouldn't make a difference because others elsewhere are ready to pick-up were we left off.
  4. ralph sutton from Canada writes: Everything that goes on a truck, plane, boat or train , passes through to the end user uses gasoline or some kind of oil fuel product. If the price of fuel is staggeringly high then so is cost of that product. So tell me then why is the central Bank so eager to punish the consumer even more with higher interest rates , when the culprit is the price of oil , established by free floating commodity markets? Inflation is not harming the value of our currency like the dollar down south, so we don't need impress foreigners to invest here . So what is it that makes the Central Bank , so eager to attack something that is far beyond their control ? Maybe it is the fact that they believe they can control it? Who knows?One thing is certain higher interest rates will cause more hardship then they will alleviate . We need new thinking , not the same old same old!
  5. Crusty Curmudgeon from Ottawa, Canada writes:
    I assume that it is 3.1% per month -- and not the 3.1% / year that they seemingly claim.
  6. Theo from Ontario. from Thule, Canada writes: Gasoline cost pushes up prices. REALLY!

    This is News?? Or has the quality or G&M reporting risen to a new low?
  7. A Canadian from Cole Harbour, Canada writes: Add to this Dion's Green shaft tax and we are done for.
  8. Theo from Ontario. from Thule, Canada writes: Heather, Why Don't You Report on Something of Real Concern?
    As a matter of fact why doesn't ANY business oriented paper report on this........http://www.thenation.com/doc/20080804/henry
  9. Big Wayne Kerr from Canada writes: Globe

    A week late, after the trend has changed, notices and puts it up front.

    They are always the last to notice - like they're the last to notice that Dion of France is French Toast.
  10. Catherine Wilkie from Canada writes: We have to minimize our dependency on a depleting resource. They are beginning the conversation in the US. Interesting times.
  11. Canada First from Canada writes: It's amazing, but the high cost of fuel hasn't stopped the speeders on the 401. The big rigs, SUVs, & cars are still zooming by at 130 & 140 as if there were an unlimited supply of fuel resources. It's not bad enough that these greedy, selfish individuals threaten our lives, and pollute our atmosphere, but also deprive future generations, even their own children, of a decent standard of life by depleting our natural resources. Unless there is an absolute, life-threatening emergency, there is absolutely no valid reason whatsoever to exceed the speed limit - period. If we have to wait an extra day for material or food commodity delivery then so be it. If this government were really serious about; - The death & destruction on our highways - Smog & air pollution - Global warming & greenhouse effect - Depletion of our natural reserves - All the health issues & costs tied to this stupidity Then they would immediately; - Reduce the speed limit on our highways - Enforce zero intolerance - Bring back photo radar (for those greedy/selfish individuals) - Ban all activities that promote a wasteful consumption of our resources and adversely effects our environment (we have one MP in Ontario who owns & operates a county race track where big diesel buses race around in a circle, wasting energy, depleting our resources & spewing contaminants into our atmosphere – as outmoded and antiquated as a Roman Amphitheatre)
  12. L I from Canada writes: handy andy - gas prices are not in the 'core' index because they are volatile. The core measure is made to see if the broader economy has accelerating prices. Items like food and energy fluctuate a lot and so are left out just to see whether there are broad economy-wide effects happening or if it is the usual noise given from gas and food. Because this is not the benchmark most households feel so central banks look at the headline CPI when making decisions, the core rate is just to inform them of the prevalance of price increases.

    LI
  13. Sean O'Reilly from Kitchener, Canada writes: WOW! What crack reporting by the G&M.
  14. Dick Garneau from Canada writes: Wow! Mortgage interest costs are up 9%. And the prime rate didn't increase. Guess what, we are paying for the sub-prime and commercial paper errors of the banks. The shareholders should take a bigger hit as they put those people in power.

    .
  15. Trenton McLeod from Pickering, Canada writes:

    Everyone saw this coming including David Miller and Dalton McGuinty. But at least they protected their socialist ( pubic sector workers ) with good pay raises. And just how did they pay for those raises when the main source of tax revenue is taking a big boot to the nuts?
  16. bill k from Canada writes: ralph sutton from Canada writes 'Inflation is not harming the value of our currency like the dollar down south'

    Yes it is as we to are printing more and more CAD. Interest rate should have never dropped as the BoC should of shut their ignorant sell out mouths when our CAD was taking off against the WORTHLESS yes i said it WORTHLESS USD. 1 CAD was $1.10 USD and going higher but now we pegged our dollar to theirs. The CAD should be $1.30 USD by now and gas prices would be at or below $1 a liter. If we allow our dollar to fall in value like our stupid American friends then we will also have and enjoy the coming hyperinflation.
  17. Summer of Discontent from Ottawa, Canada writes: What will happen with the proposed 'Green Shift' TAX????

    It will send prices of EVERYTHING through the roof.

    Dion the self-confessed 'I'll tax the air you breathe' would ruin the economy for years.

    Pathetic.
  18. The Centrist from Canada writes: This is an outrage and a disgrace. More economic mismanagement courtesy of this neocon government and its political operatives as they undo the work of Jean Chretien and Paul Martin.
  19. bill k from Canada writes: L I from Canada writes: handy andy - 'gas prices are not in the 'core' index because they are volatile'

    L I that's what the propagandists want stupid people to believe. Many of the non'core' inflation item were once part of the 'core' inflation numbers. To say they took it out because they were 'volatile' is nothing more then a joke but as long as the stupid brainwashed puppet masses believe the BIG lie then everything is ok.
  20. Silver Standard (Used to be gold) from Canada writes: Inflation and interest rates NEED to include gas, rent, food, electricity and I would throw in gold and silver on top of that. Interest rates would have been higher and our money would be worth much more.
  21. Trenton McLeod from Pickering, Canada writes: Get ready for massive tax increases folks: July 17, 2008 - 3:00pm body: – Ontario’s manufacturing recession has claimed another 720 jobs while Dalton McGuinty continues to refuse to use tools to stem the job losses, charges NDP Leader Howard Hampton. “The job losses at Sterling Truck are devastating for St. Thomas. The community is being punished economically while the McGuinty government remains stuck in neutral, refusing to use the tools at its disposal to save some of these jobs,” said Hampton. Earlier today, it was reported Sterling Trucks is eliminating one of its two remaining shifts and laying off another 720 workers, bringing to more than 1,300 the number of workers the company has laid off at its St. Thomas plant. ”These high-paying auto industry jobs are the bedrock of the economy in communities across Ontario. For every auto job lost, another seven jobs disappear. The spin-off is enormous in a community like St. Thomas. These job losses add to the more than 210,000 manufacturing jobs that have been lost in Ontario under the McGuinty government’s watch,” said Hampton. Hampton said Ontario is losing its manufacturing jobs to jurisdictions with policies that encourage investment and job creation – policies such as a refundable manufacturing investment tax credit.
  22. Silver Standard (Used to be gold) from Canada writes: bill k from Canada writes: ralph sutton from Canada writes 'Inflation is not harming the value of our currency like the dollar down south'

    Yes it is as we to are printing more and more CAD. Interest rate should have never dropped as the BoC should of shut their ignorant sell out mouths when our CAD was taking off against the WORTHLESS yes i said it WORTHLESS USD. 1 CAD was $1.10 USD and going higher but now we pegged our dollar to theirs. The CAD should be $1.30 USD by now and gas prices would be at or below $1 a liter. If we allow our dollar to fall in value like our stupid American friends then we will also have and enjoy the coming hyperinflation.
    ________________

    BINGO, and I may add that most of the drop in gas prices right now have to do with demand destruction. The dollar is still being printed like there is NO TOMORROW. If they finnally bail out Fannie and Freddie we are done for.
  23. Big Wayne Kerr from Canada writes: Canada First' - Reduce - Enforce zero intolerance - Ban all activities'

    There a Stalin in every Lefty.
  24. Silver Standard (Used to be gold) from Canada writes: bill k from Canada writes: L I from Canada writes: handy andy - 'gas prices are not in the 'core' index because they are volatile'

    L I that's what the propagandists want stupid people to believe. Many of the non'core' inflation item were once part of the 'core' inflation numbers. To say they took it out because they were 'volatile' is nothing more then a joke but as long as the stupid brainwashed puppet masses believe the BIG lie then everything is ok.

    _______________________

    the 1984 world we live in is hard isn't Bill k. The argument that guy made is the chant they all say like a bunch of Zombies.
  25. Steve from Canada from Canada writes: Inflation up 1.8%, you got to love those economists when the article states.

    Gas up 26.9%
    Mortgate interest cost up 9%
    Food up 3%
    Bakery goods up 12.3%
    Air travel up 14.3%
    Overall goods up 2.5%
    Service prices up 3.7%

    Figuring out how the goverment calcuates inflation is like trying to figure out the charges on your phone bill.

    Many Canadian companies have an annual cost of living increase for staff. I suggest that if the goverment actually calcuated the cost of living and inflation based on actual costs most of the Canadian companies would have to shut their doors because it would be in the order of 15%
  26. Theo from Thule, Ontario. from Canada writes: The Dion 'Green Shift Tax' = the ultimate and long desired 'Poll'tax, the tax on everyone head.
  27. Aloha Eric from Toronto, Canada writes: Great, I'm glad it's the NON-core things that have raging inflation (ie. food, gas, mortgage interest). I guess I must be in the minority as these impact me the most each and every day.
  28. D. Hall from Wpg, Canada writes: 'A Canadian from Cole Harbour, Canada writes: Add to this Dion's Green shaft tax and we are done for.'

    Can we please can the insipid paid political announcements for a while? I am so tired of these stupid, non informative, hack produced, formulaic, uninteresting, off topic, pieces of infantile name calling.

    Did I mention I am sick of this stuff?

    Go get a life. Or stay and try real hard to think of something interesting to say.
  29. Aloha Eric from Toronto, Canada writes: Here's what i find unusual, these non-core items have a combined 63.54% weighting in the CPI.
    Food 17.04%
    Shelter 26.62% (woefully low given the asset inflation)
    Transportation 19.88%

    Granted, there are other items in these weightings but still I don't see how food, gas and mortgage interest are non-core.
    http://www.statcan.ca/english/Subjects/Cpi/cpi-en.htm#tab1ftnote3
  30. Matthew M from toronto, Canada writes: To ralph sutton. You must not live within your means. Low interest rates are causing my saving to be worthless, since low rates cause inflation to increase above normal levels. T-Bills, bonds and equities typically don't keep up with inflation in the short-term, so why do you think all the big pension plans are moving into commodities (like oil and gold). 1) Commodities provide for REAL inflation protection caused by low interest rates and 2) they get a bonus if the emerging markets keep to demanding more commodities. The reason the US keep their rates so low is because the government and citizens do NOT live with their means.
  31. Stude Ham from Canada writes:

    lessee... if inflation goes up then something can be done about the interest rates (ie the cost of acquiring money) by the BOC. However, because of the cruel politics and greed of the iloies, nothing will be done by any guvt to address the real causes of that inflation, namely their piratical highway robber gas price hikes.

    the oilies are allowing and very happy to let everyone suffer for their benefit and their benefit alone.
  32. Derek Holtom from Swan River, Canada writes: Seems like a great time to punish Canadians with a carbon tax.
  33. Aloha Eric from Toronto, Canada writes: So go back to Dec 2007 when the bank first starting cutting interest rates while CPI was 2.4% and core CPI 1.8%, perfectly in the bank's comfort zone (if not a little high), all on the EXPECTATION of lower future inflation. Now we have REAL inflation, and the bank does nothing.

    http://www.bankofcanada.ca/en/fixed-dates/2007/rate_041207.html
  34. David Smith from Toronto, Canada writes: Ok people, lets take a deep breath and sit back...

    Things are not as bad as it may appear, Walmarts are opening up, lots of replacment jobs there for the displaced auto workers, plus we can all go shopping there for cheap made in china crap.
  35. CallofDuty . from Toronto, Canada writes: Just wait until the interest rates start to increase…we Canadians are screwed. The hole we dug with low interest’s rates is going to be very hard to come out of.
  36. B Z from Toronto, Canada writes: Took my car to the shop to get it fixed 'Clean Air Sticker' and biked to work this morning ... wow ... one of those 'why don't I do this more often' ... Toronto has parks !?!?

    Screw the 427 & 401 for the rest of the summer ... let it rain ... the shower at work will be used for the first time in it's five year history !!!

    Hopefully my stomach can show up as a decrease to offset the inflation increase...
  37. Greg Out West from Canada writes: Lots of comments on dion's carbon tax. While I agree I'm not worried as it will never happen. As long as the LPC has a leader like dion with stupid idea's like a carbon tax to pay for LPC social programs the CPC will stay in power. Minority or majority, it doesn't matter.
    The increase in world oil prices is already changing the way people go about their daily lives. Last thing we need is a government introducing another tax.
  38. garlick toast from Canada writes: We are shifting to a credit card economy,unsustainable and crippling in the long run.
  39. Catherine Wilkie from Canada writes: A revenue neutral plan, audited and reported to Canadians, seems more integral to Canadian families in meeting their needs than Harper's plan.
    Harper's plan? To mute the opposition and remain in the pockets of big oil.
  40. Crusty Curmudgeon from Ottawa, Canada writes:

    The Centrist from Canada writes: This is an outrage and a disgrace. More economic mismanagement courtesy of this neocon government and its political operatives as they undo the work of Jean Chretien and Paul Martin.

    You mean all the work that they did in starving the health care system into oblivion and downloading the cost of federal programmes onto lower levels of government --- yeah great work on their part.

    Now talk about something other than your one-sided lemming agenda -- paid for by the LIEberal party
  41. Greg Out West from Canada writes: Catherine Wilkie from Canada writes: A revenue neutral plan, audited and reported to Canadians, seems more integral to Canadian families in meeting their needs than Harper's plan.
    Harper's plan? To mute the opposition and remain in the pockets of big oil.
    -----------------------------------------------------------------------------
    Catherine, all government plans are revenue neutral. The LPC Adscam was revenue neutral. Money in equals money out. It's what the government does with the money that counts.
    If the dion's green shaft is about climate change then great. Spend every single dime on things dealing with climate change. Not day care. Not poverty. Dion and the LPC already know that Canadians will not buy into this plan. That's why we don't hear about it any more.
  42. Peter Wojnar from Hamilton, Canada writes:

    The provinces and fed could help by reducing gas and diesel taxes.
  43. Dick Dupa from Toronto, Canada writes: 'Gasoline cost pushes up prices'?
    OMG, thank you for this info, as I would not know about it. I buy only food, not buy Chinese stuff, I drive less than 10K kilometers/year in a small car and I do not fly. So..F..F....F...O.....f.
  44. skenderbeg begger from Albania writes: L I from Canada writes: handy andy - 'gas prices are not in the 'core' index because they are volatile'
    I might dont know much but VOLATILE or not volatile but if somebody could explain this... in last 2 years gas price went up from 0, 60 to 1,30 $ (110% increase) so does volatile means if prices steadily move UP on average of 50 % per year,or Volatile means they move daily 1-2 % ??? or it means that somebody doesnt want to show the true colours of slavery ???
  45. Outlier in Calgary from Calgary, Canada writes: Frankly, everyone should have to post their own self-interest before they comment. I have a variable rate mortgage and so I'm likely to argue in favor of holding the line on rate increases. Those stuck in high fixed mortgages feeling stupid right now are going to argue in favor of big hikes. Self-interest is alive in well on the interest front. So, for subsequent posts- just for fun. Just say Variable or Fixed before you make your argument.
  46. Naomi N from Canada writes: Silver Standard (Used to be gold) from Canada writes: Inflation and interest rates NEED to include gas, rent, food, electricity and I would throw in gold and silver on top of that. Interest rates would have been higher and our money would be worth much more.
    -----------------------------------
    If gas price are included in inflation, you will have deflation in July Crude oil price are dropping so gas price are back down from the ridiculous peak.
  47. Fred Wagner from Brockville, Canada writes: Spikes in CPI have happened before and Canada did not fold like a deck of cards. The 'average' year-over-year is what really counts - not the month to the previous year's month. Look at http://www.bankers-banquiers-canada.ca/inflation.html for a little common sense. The truth is that averages happen regardless - replace Carney with a monkey and little would change overall. Bank of Canada is much like religion twiddling the dials on humanity - get off your knees, stand up and open your eyes.
  48. City Pig from Canada writes: A lot of posters are suggesting the government could reduce cost to the consumer if they reduced gas/diesel tax. The problem with that is the whole 'revenue neutral' thing.

    Government has got so big that it needs revenue (read taxes) to function. So if fuel tax is cut at the pump they will have to make up the difference somewhere else. Your guess is as good as mine, but that might look like increased income taxes.

    Dion is proposing his carbon tax which is supposed to be 'revenue neutral'. Lots of problems with that since at the end of the day the government will end up with the same amount in its coffers but it will certainly leave lots of Canadians who can't affort it paying much more.

    What really needs to happen is for the Government to get smaller, ie: spend less. Thus needing to take less from us, either at the pumps or from income tax.

    So, what are we willing to give up to make that happen?
  49. Joseph Bloggins from Canada writes: The Centrist from Canada says 'This is an outrage and a disgrace. More economic mismanagement courtesy of this neocon government and its political operatives as they undo the work of Jean Chretien and Paul Martin.'

    What an economic dolt you are. Hey Centrist....just so you know, the government doesn't control the economy as it did in your beloved communist countries (you know....the ones where they distributed poverty evenly). It's called world economics and it something that the nanny state can't always protect childish whiners like you from. I realize you don't have the capacity to govern your own affairs and you need a 'mommy' to help you. Maybe you should seek some help for your lack of abilities. Maybe school might help. Dolt.
  50. City Pig from Canada writes: I gotta admit I am always amazed by the left and how they blame Harper for the current economic conditions.

    It is a global economy, we trade with the US, South East Asia, Europe etc. Do people not get that we pay based in part on what is happening in other economies?

    You can blame government for increased taxes, and generally it's left leaning goverments that increase taxes to support social programs.

    Read my previous post.
  51. Rick C from Canada writes: Amazing!! Starting with Outlier in Cow town and Naomi there were five or six consecutive posts that were reasonable well considerd opinions!! Way to go people!! Its a start!!

    Now we will get the missguided political drivel from the useusal list of suspects but Outlier, Naomi, City Pig, Joe Bloggins and Fred have set a new standard for consecutive posts without insipid content!! Thanks!!
  52. Stude Ham from Canada writes:
    'Derek Holtom from Swan River, Canada writes: Seems like a great time to punish Canadians with a carbon tax. '

    no question that the ct is a bit of a boondoggle at this time. however... is it perfectly ok, in the absence of the CT, for the oilies to gouge and gouge and gouge for the sake of their fat butts?

    at least the ct will hit them hard at their filthy envoironment poisoning antics which now has seen alarming rates of very unhealthy medical conditions surface near their tar sands projects.
  53. RD Lone from Vancouver, Canada writes: Bring on the Green Shaft! When that happens, electricity, heating, fuel, etc will all skyrocket forcing the government to raise interest rates. That in turn will cause massive foreclosures and then people won't be able to afford housing, cutting down the co2 emitted. Good thing you'll have cheaper daycare since you wouldn't want your kids sleeping under the bridge with you.
  54. City Pig from Canada writes: Rick C from Canada writes: Amazing!! Starting with Outlier in Cow town and Naomi there were five or six consecutive posts that were reasonable well considerd opinions!! Way to go people!! Its a start!!

    Now we will get the missguided political drivel from the useusal list of suspects but Outlier, Naomi, City Pig, Joe Bloggins and Fred have set a new standard for consecutive posts without insipid content!! Thanks!!
    ____________________________________________________

    What did you find about my post that was 'missguided political drivel with insipid content'?

    I went back to see if you had posted anything and other than the above insulting rant I didn't see you offering any opinion on the subject.
  55. Old Sam Dark and Dirty from Republic of Newfoundland, Canada writes: Catherine Wilkie from Canada writes: A revenue neutral plan, audited and reported to Canadians, seems more integral to Canadian families in meeting their needs than Harper's plan.
    Harper's plan? To mute the opposition and remain in the pockets of big oil. ========

    Catherine please. The plan may be revenue neutral to the government but it will not be revenue neutral to the people that will have to pay that tax.

    Do you think you or I will get all of the extra money we have to pay for Food, Electricity, Gasoline, Heating Oil, Clothes, Hotel rooms, etc, etc, etc?

    We will feel the pinch and our standard of living and economy will suffer. That was the whole point of the Kyoto Accord to kill economies like ours and give money to developing countries.

    The only difference is that the Liberals will take oyr money then meutrally fork it over to their friends who will be providing services to the government for their plan.
  56. Alastair james Berry from NANAIMO BC, Canada writes:
    The general public out here on Vancouver Island, in NANAIMO, have known this fact for at least six months even tho 'Stats Can' seemed oblivious to the fact.

    To make our problems a lot worse, our Fisheries are in a state of collapse, our Paper Mill(the largest municipal tax source) has folded, likewise most of our saw mills, tourists have all but vanished, a well established heavy machinery company is bankrupt.....................

    That would be bad enough but we have seen prices rise sharpy with things STATS CAN does not even seem to know about - Municipal Taxes, Transit and Ferry fares, Hydro rates AND NOW EVEN A CARBON USE TAX!!!

    Life can be difficult for Canadian Taxpayers on VANCOUVER ISLAND (and are we ever 'peeved' to see the Feds pouring 100 of millions of Can $1 s into Quebec City for ' CELEBRATIONS '.
  57. d t from Toronto, Canada writes:
    Big Wayne Kerr from Canada writes: Canada First' - Reduce - Enforce zero intolerance - Ban all activities'

    ...if only we could 'enforce zero intolerance', the world would be a much happier place.
  58. Mike Fraser from Toronto, Canada writes: The fuel for aircrafts in Toronto, also Moscow costs more then in London,Rim,Paris in Europe.
  59. Rick C from Canada writes: Ah,....City Pig, I said your post and the others that I mentioned were well considerd posts,....un-like the normal posts here. Including yours, there were a group of posts that were to the point, on topic and non political and I thanked you for them. Again,...Thanks!
  60. M Poland from Canada writes: First off, Bill K, the Canadian dollar is, emphatically, NOT pegged to the greenback. Turnip. Alastair James Berry from B.C. [Bring Cash], I guess I really do have to mention the millions & millions of taxpayer $$$ heading into the Vancouver Olympics, then. Catherine Wilkie, you are beyond redemption, I suppose, at one with Stude in your splendid isolationist world. What many of you ranters cannot conceive of is how the fact that Canadian oil & gas have shielded us from the full effects of the global rise in energy prices. This is why the Canadian $ is doing so well.
  61. City Pig from Canada writes: Rick C. I guess I misunderstood your post. I didn't think I had said anything too bizarre this time. I have in the past though.

    Sorry.
  62. Yvonne Wackernagel from Woodville, Canada writes: 'Mortgage interest costs, bakery products and air transportation were also major drivers of the 3.1 per cent annual inflation rate, Statscan said.'

    DON'T FORGET THE MOST STAPLE DIET - M I L K . Yesterday I couldn't believe the price of a 4 ltr. bag of milk - $6.69. When my kids were teenagers I bought 7 bags of milk a week; I wonder if I would have been able to afford to buy milk at that price. I am sure that a lot of families will be cutting back on this product which will have serious consequences down the road.
  63. City Pig from Canada writes: Everyone who is running around shouting 'the sky is falling'. Wait just a minute.

    Interest rates are still low. Housing sales are still ok. So it takes two to three weeks to sell no instead of 2-3 days with a bidding war. Housing prices are still going up. Gas in Canada is still lower than most of the rest of the world.

    Lets not talk ourselves into a recession. Jobs in the auto sector are being lost, bad business planning on the part of GM. Look back over the years, companies fail, they downsize etc. Jobs are then created in other sectors.

    Canada is a land with excellent natural resources, we have an abundance of drinking water, fossil fuel and minerals. We can grow food and raise livestock. We have bargining chips that other nations want and need.

    Everyone, breath in.....now breath out.
  64. Big Wayne Kerr from Canada writes: Yvonne Wackernagel '. Yesterday I couldn't believe the price of a 4 ltr. bag of milk - $6.69'

    Try another store.
    Same thing in Costco - about $4
  65. City Pig from Canada writes: Yvonne Wackernagel from Woodville, Canada writes: 'Mortgage interest costs, bakery products and air transportation were also major drivers of the 3.1 per cent annual inflation rate, Statscan said.'

    DON'T FORGET THE MOST STAPLE DIET - M I L K . Yesterday I couldn't believe the price of a 4 ltr. bag of milk - $6.69. When my kids were teenagers I bought 7 bags of milk a week; I wonder if I would have been able to afford to buy milk at that price. I am sure that a lot of families will be cutting back on this product which will have serious consequences down the road.
    _______________________________________________________

    And I remember when I was a kid, my dad got paid in cash on Friday and we walked to the local grocery store and bought a weeks worth of food for $20. Candy bars were a dime and it never rained or snowed.

    The point is prices go up, and up and up. I remember when candy bars went from 10 cents to 20 cents, I thought the world was coming to an end.
  66. Yvonne Wackernagel from Woodville, Canada writes: 'M Poland from Canada writes: First off, Bill K,............ Alastair James Berry from B.C. ............ then. Catherine Wilkie, you are beyond redemption....................,What many of you ranters cannot conceive of is how the fact that Canadian oil & gas have shielded us from the full effects of the global rise in energy prices. This is why the Canadian $ is doing so well.'

    --------------------------------------------------------------------------------------

    I disagree with your last sentence and must assume that your criticism of everyone else is shallow. You should read Chapter 11 of NAFTA and you will see how we are stuck with high gas prices because of that contract. In other gas and oil producing countries, their citizens are charged - e.g -12 cents a gallon in Venezuela, 17 cents a gallon in Iran, to give a couple of examples.
  67. Joe Campanella from Canada writes: Above person writes: Everything that goes on a truck, plane, boat or train , passes through to the end user uses gasoline or some kind of oil fuel product. If the price of fuel is staggeringly high then so is cost of that product.

    This is not completely and absolutely true. Case in point: Go to any Loblaws and check out their produce. Most if not all of it comes from the USA or South America (apples, cherries, tomatoes, strawberries, lettuce - almost everything). Only a token amount is from Ontario, BC or Quebec. Why? Because its more expensive than the imported stuff despite short travel distances and Loblaws won't stock it.

    If your above statement is true then we should see Ontario etc produce become cheaper relative to the imported stuff. I am still waiting. Not only that it TASTES better!
  68. City Pig from Canada writes: Joe Campanella from Canada writes: Above person writes: Everything that goes on a truck, plane, boat or train , passes through to the end user uses gasoline or some kind of oil fuel product. If the price of fuel is staggeringly high then so is cost of that product. This is not completely and absolutely true. Case in point: Go to any Loblaws and check out their produce. Most if not all of it comes from the USA or South America (apples, cherries, tomatoes, strawberries, lettuce - almost everything). Only a token amount is from Ontario, BC or Quebec. Why? Because its more expensive than the imported stuff despite short travel distances and Loblaws won't stock it. If your above statement is true then we should see Ontario etc produce become cheaper relative to the imported stuff. I am still waiting. Not only that it TASTES better! _________________________________________________________ Its not that simple. Yes everything arrives on a truck and therefore the price is effected by the cost to transport it. However, produce grown in Ontario suffers from the fact that wages are much higher here than say Mexico. Why do you think so many products are produced off shore and shipped to North America. Wages in say Vietnam are low compared to North America. So its cheaper to manufacture there and ship thousands of miles than it is to produce the same goods here and pay north american wages. Part of the reason for GM's failure.
  69. mike sty - from Canada writes: I remember when beer went from $5.65/24 to $12.00/24. I thought the world was coming to an end. Now its over $35.00 for the good stuff.
  70. - Nostradamus from Halifax, Canada writes: '[Local produce is] more expensive than the imported stuff despite short travel distances and Loblaws won't stock it.'

    That will change when gasoline rises to $5 a liter.

    Energy expert Robert Hirsch predicts gas will go to US $15 a gallon:

    http://youtube.com/watch?v=D7fFffo3XE8

    ===
  71. Joe Campanella from Canada writes: Its not that simple. Yes everything arrives on a truck and therefore the price is effected by the cost to transport it. However, produce grown in Ontario suffers from the fact that wages are much higher here than say Mexico. Why do you think so many products are produced off shore and shipped to North America. Wages in say Vietnam are low compared to North America. So its cheaper to manufacture there and ship thousands of miles than it is to produce the same goods here and pay north american wages. Part of the reason for GM's failure.

    I am talking about fruit - not cars - California is where Loblaws gets most of its fruit and vegatables. The state could probably supply all of Canada. My point wss that if gas prices affect costs of importing these goods (as above person wrote) then Ontario fruits and vegetables should become relatively cheaper and Loblaws should stock them as a result.

    or is there something missing here which above poster forgot and that is the size of the supply which feeds the demand?
  72. City Pig from Canada writes: Joe Campanella from Canada writes: Its not that simple. Yes everything arrives on a truck and therefore the price is effected by the cost to transport it. However, produce grown in Ontario suffers from the fact that wages are much higher here than say Mexico. Why do you think so many products are produced off shore and shipped to North America. Wages in say Vietnam are low compared to North America. So its cheaper to manufacture there and ship thousands of miles than it is to produce the same goods here and pay north american wages. Part of the reason for GM's failure. I am talking about fruit - not cars - California is where Loblaws gets most of its fruit and vegatables. The state could probably supply all of Canada. My point wss that if gas prices affect costs of importing these goods (as above person wrote) then Ontario fruits and vegetables should become relatively cheaper and Loblaws should stock them as a result. or is there something missing here which above poster forgot and that is the size of the supply which feeds the demand? _______________________________________________________ The workers picking the fruit in California are migrants from Mexico and mostly illigal and paid poorly. They also have a longer growing season and therefore higher production yields allowing for lower unit costs.
  73. Rick C from Canada writes: Yvonne, While its true that gas (and other fuels) are less expensive in other countrys, I'm not sure its a fair compairson.

    I look at it like all taxation. You dont have to pay tax or buy expensive fuel. There is an alternative. You can move to places that dont have tax,...Like Sudan, Nigeria and a host of others that offer a low to no tax economy. That option is always there!

    The low fuel cost countries are, perhaps, less extreme examples but the same principal applies, you dont get much for nothing!!

    Things here (in reletive terms) are pretty good.

    Now dont get me wrong,...there is always room for improvement but as it stands right now,... I'm not willing to trade, the opportunities we have here, for anywhere else. Espeically the low fuel cost or low taxation countries!!
  74. Joe Gopher from Canada writes: The liberals plan on raising the tax on diesel fuel but not on gasoline.
    Diesel fuel produces less C02 per mile than gasoline.
    It's also the fuel of choice for public transit buses.
    Oddly, the West uses more diesel fuel while the east uses more gasoline.
    And even more oddly, the diesel burning West doesn't vote liberal while the gasoline guzzling east does.
    Kinda makes you wonder if the liberal Green Shaft really is about the environment or if it might have something to do with buying votes in the east with money stolen from the West?
  75. Joe Campanella from Canada writes: above person writes: 'The workers picking the fruit in California are migrants from Mexico and mostly illigal and paid poorly. They also have a longer growing season and therefore higher production yields allowing for lower unit costs.'

    Do you know this for a fact or are you just speculating?

    Would not our free trade deal with the US mitigate against this sort of behaviour settting aside Loblaw's unethical selling of products in which illegal and/or underpaid labour is involved? If what you say is correct it strikes me as very odd that no-one including the NDP has ever complained about this sort of thing. Maybe they too like their lettuce and tomatoes cheap.

    Anyway the point is as I said above that transportation costs are really not the only factor determining price structure. Fruits and vegtables are a case in point. I suppose Wal Mart with all its cheap chinese stuff is another.
  76. J Kay from Canada writes: I swear every time there is an article about inflation we see the same comments over and over again and no matter how many times these same incorrect and misinformed statements are corrected, they continue to pop up and rear their ugly heads like mole at a carnival midway game.

    When Statistics Canada measures inflation, the measure they use is headline inflation, however due to volatility in the 'volatile groups' component, the also separate out the volatile components and report core inflation. That doesn't means the numbers are being fudged or that people are using core inflation for assessing cost of living increases. In fact there is another measure COLA which is used for that and built more on the headline inflation measure.

    Core inflation is reported because it gives a better idea of what is happening to broader prices, irrespective of supply-demand constraints and pressures. Food is both seasonal and subject to crop failures, poor weather, etc, which can result in prices being quite volatile from one period to another, and this volatility is NOT inflation, so they (Stats Can) seasonally adjust data and do other things to remove the noisiness of the data as well as separating out from other items that are far less volatile and oscillatory.

    When people remember back to the 'good old days' when milk cost $0.50 and you could see a movie for a nickel, everyone seems to forget that you earned $30 a week. Incomes have also inflated but it seems there is cognitive dissonance that all wage increases are earned.
  77. J Kay from Canada writes: The whole carbon tax rant constantly being regurgitated by Conservative posters referring to their talking points is really annoying.

    The carbon tax idea is in my informed opinion a good idea, theoretically. The problems I see with it are that, given the precipitous rise in fuel prices and only a minor amount of change in people's consumption patterns, a carbon tax is unlikely to result in behavioural changes if a doubling of gas prices doesn't.

    That said, prices should reflect the negative externalities of consumption and someone who uses more should pay more and don't say they already do, if the price is subsidised, by externalities not being priced in, then they receive a bigger subsidy.

    If the tax is revenue neutral with an offsetting decrease in income taxes as is proposeds, then there is merit to a it, since I can avoid - read modify my behaviour - to minimize my consumptive tax burden but I can't avoid the income tax burden as easily and no amount of behaviour modification - legal - will allow me to do so.

    All that said, the fly in the ointment is that to allow wide scale changes to peoples behaviour patterns a significant amount of structural changes need to occur to our economy and land use planning to facilitate meaningful behaviour changes. Those will take time.

    It's exactly the same reason why I preferred an income tax cut to a GST cut. I can control and cut my consumption and therefore the amount of taxes I pay with respect to my consumption, I cannot however easily lower my income taxes, save a few existing mechanisms.
  78. Alistair McLaughlin from Canada writes: For those of you crying about what the Core rate includes and doesn't include, the BoC has access to BOTH the Core CPI and the CPI. Do you honestly think that they only pay attention to the Core CPI and completely ignore the CPI? Why is the CPI even published then?? The core rate strips out certain volatile items to identify underlying trends. It is by no means the final word on the subject. If the bank feels the CPI is getting out of control, they will act. Trotting out the Core CPI as some sort of conspiracy that allows the central bank to devalue money is just nutty. No statistic tells the whole story, and having more than one inflation measure is helpful. Now some conspiracy theorist can come along and tell me how 'brainwashed' I've been by the government's 'propaganda'. I look forward to the links and YouTube references.
  79. Richard E. Gower from Canada writes: To: Yvonne Wackernagel from Woodville, Canada who wrote: In other gas and oil producing countries, their citizens are charged - e.g -12 cents a gallon in Venezuela, 17 cents a gallon in Iran, to give a couple of examples.

    ------------------------------------------------------------------------------------------

    Gasoline prices at the pumps are subsidized for consumers in many of the countries where fuel costs are abnormally low compared to the rest of the world. This is now under review in some of the countries, so they may not enjoy it much longer.
  80. Silver Standard (Used to be gold) from Canada writes: Naomi N from Canada writes: If gas price are included in inflation, you will have deflation in July Crude oil price are dropping so gas price are back down from the ridiculous peak.

    (((Thats ok, there is nothing wrong with defation, it makes things cheaper to buy. But I am afraid this is only temporary.))

    M Poland from Canada writes: First off, Bill K, the Canadian dollar is, emphatically, NOT pegged to the greenback. Turnip. Alastair James Berry from B.C. [Bring Cash], I guess I really do have to mention the millions & millions of taxpayer $$$ heading into the Vancouver Olympics, then. Catherine Wilkie, you are beyond redemption, I suppose, at one with Stude in your splendid isolationist world. What many of you ranters cannot conceive of is how the fact that Canadian oil & gas have shielded us from the full effects of the global rise in energy prices. This is why the Canadian $ is doing so well.

    (It is pegged, it has been following the dollar non stop since last fall. Our dollar should be much higher right now. They keep interest rates low for nothing too, its just to help America spend more. Our dollar is not doing well either, its the American dollar losing value and ours is now going down with it. You have to stop watching the TV.)
  81. Rick C from Canada writes: Silver,....If the loonie is pegged to the grenn back it must be a flexable peg.

    In recent memory the loonie have been able to run from .62 to 1.10 us. Thats a flex of just below %90!!

    Perhaps we have a different definition of "pegged currency".
  82. Dave B from Canada writes: Big Wayne Kerr from Canada writes: Canada First' - Reduce - Enforce zero intolerance - Ban all activities'

    There a Stalin in every Lefty.

    ------------------------
    LOL! How true it is! Glad to see that someone other than myself sees that! :-)
  83. Vote NDP in the next federal/provincial election from Toronto, Canada writes: Another reason to impose a price ceiling on gas before inflation gets out of control.
  84. Silver Standard (Used to be gold) from Canada writes: Rick C from Canada writes: Silver,....If the loonie is pegged to the grenn back it must be a flexable peg.

    In recent memory the loonie have been able to run from .62 to 1.10 us. Thats a flex of just below %90!!

    Perhaps we have a different definition of "pegged currency".

    ____________

    Maybe a little flexible yes, but the trend is always in the same direction. If we had Higher interest rates our dollar would be worth more.
  85. Silver Standard (Used to be gold) from Canada writes: Rick C from Canada writes: Silver,....If the loonie is pegged to the grenn back it must be a flexable peg.

    In recent memory the loonie have been able to run from .62 to 1.10 us. Thats a flex of just below %90!!

    Perhaps we have a different definition of "pegged currency".

    ____________

    (Correction, I put in another post but I miss understood what you wrote)

    .62 to 1.10 is the USD crashing in value...not the Canadian one going up. Now our dollar is being held to a certain level close to the American one..and the USD is still falling. This is why the prices are going higher and higher faster than demand would suggest. Its inflationary. They are inflating the dollar along with the american one...so ecentially they are holding us down.
  86. Blasphemous Apostate from Cahones, Mexico writes: Shoot all the speculators......
  87. Joe Gopher from Canada writes: Just wait until the liberals get in and impose their Tax On Conservatives.

    That's what it is, they have admitted it will be a tax that is largely collected in the West and the goodies distributed in the east.
    And we all know the liberals will have no MPs from Saskatchewan or Alberta next election and very few from BC.
  88. Rick C from Canada writes: Silver,...A currency that is pegged to another currency stays at the same value relative to that currency.

    A currency whose value changes nearly %80, relative to another currency, is definetly NOT pegged to that currency.

    Again,...I think you and I define "pegged currency" differently!!

Comments are closed

Thanks for your interest in commenting on this article, however we are no longer accepting submissions. If you would like, you may send a letter to the editor.

Report an abusive comment to our editorial staff

close

Alert us about this comment

Please let us know if this reader’s comment breaks the editor's rules and is obscene, abusive, threatening, unlawful, harassing, defamatory, profane or racially offensive by selecting the appropriate option to describe the problem.

Do not use this to complain about comments that don’t break the rules, for example those comments that you disagree with or contain spelling errors or multiple postings.