Personal Finance

Canada's inflation rate turned negative in April for first time since 2009

  • Last Updated:
  • Jun 17th, 2020 12:03 pm
[OP]
Banned
Apr 25, 2020
722 posts
561 upvotes
M1C

Canada's inflation rate turned negative in April for first time since 2009

from https://www.cbc.ca/news/business/inflat ... -1.5576581

Canada's inflation rate fell to an annualized –0.2 per cent in April, as the COVID-19 pandemic pushed down consumer prices to their lowest level in more than a decade.
Among the major categories seeing huge price declines were:
  • Gasoline, down by almost 40 per cent.
  • Traveler accommodation, down by almost 10 per cent.
  • Electricity prices, down by more than four per cent.
  • Clothing and footwear, down by almost six per cent.
Food prices were among the few products that got more expensive during the month, rising by 3.4 per cent overall due to "higher demand for non-perishable food products, as consumers were encouraged to limit grocery shopping trips as a result of physical distancing measures," the data agency said.
20 replies
Deal Fanatic
Jan 21, 2018
5947 posts
6167 upvotes
Vancouver
It's all gas price. The headline should probably read "inflation went up due to rising prices across the board, except for gasoline"
Deal Fanatic
Oct 7, 2007
8959 posts
4806 upvotes
Scote64 wrote: It's all gas price. The headline should probably read "inflation went up due to rising prices across the board, except for gasoline"
I could have swore that when gas prices were going through the roof they were leaving gas prices OUT of the inflation calculation. I was googling to find a supporting story on this but couldn't recall exactly what jurisdiction this was for.
Deal Addict
User avatar
Dec 4, 2007
4143 posts
1803 upvotes
Quebec
whats this mean exactly? is this good or bad for customer / economy?
Jr. Member
Jan 14, 2013
123 posts
133 upvotes
Kitchener
choclover wrote: I could have swore that when gas prices were going through the roof they were leaving gas prices OUT of the inflation calculation. I was googling to find a supporting story on this but couldn't recall exactly what jurisdiction this was for.
I think you're right but don't have evidence - food and housing exempted I thought.
[OP]
Banned
Apr 25, 2020
722 posts
561 upvotes
M1C
The Bank of Canada believes weaker demand from Covid-19 will outweigh any supply side impacts, putting downward pressure on prices

Demand Hit Warrants Looser Bank of Canada Policy, Lane Says
  • BoC sees potential scarring effect on economy from pandemic
  • On balance, downward pressures on inflation likely: Lane

https://www.bnnbloomberg.ca/demand-hit- ... -1.1438989
Newbie
Aug 17, 2011
29 posts
5 upvotes
Toronto
Really? The only thing I buy now is groceries and I have noticed price keep going up in the last few years and few months.
Sr. Member
Jul 13, 2016
932 posts
556 upvotes
HyperTech wrote: whats this mean exactly? is this good or bad for customer / economy?
They make it sounds like it's good, but don't lie to yourself, it's bad.
Deal Addict
Nov 13, 2013
2925 posts
1626 upvotes
Ottawa
choclover wrote: I could have swore that when gas prices were going through the roof they were leaving gas prices OUT of the inflation calculation. I was googling to find a supporting story on this but couldn't recall exactly what jurisdiction this was for.

There is inflation and core inflation which excludes volatile energy component. Yes you are right the media and others cherry pick information. The Central Bank looks at both but won't raise interest rates because inflation shoots up solely based on fuel prices. Meanwhile calculations for payments include everything. Naturally as another poster pointed out the basket of goods for most of us has changed so we aren't benefiting much from a drop in fuel and lodging prices and are paying more for our food. I noticed even when prices aren't up there is a lot less on sale so the weekly purchase for a smart Redflag shopper is up even more than official statistics imho.
Member
Oct 11, 2013
216 posts
61 upvotes
Almost American
Scote64 wrote: It's all gas price. The headline should probably read "inflation went up due to rising prices across the board, except for gasoline"
This is why I drive a plugin hybrid. Mmm, all the energy I need comes from the most abundant source in our solar system - the sun. I used to fill up pretty much weekly, now it's seasonally. I think I'll fill up in ... September.
Deal Addict
Jan 12, 2017
1456 posts
761 upvotes
You have 1+kW of solar and battery capacity at home?
expresspotato wrote: This is why I drive a plugin hybrid. Mmm, all the energy I need comes from the most abundant source in our solar system - the sun. I used to fill up pretty much weekly, now it's seasonally. I think I'll fill up in ... September.
Member
Oct 11, 2013
216 posts
61 upvotes
Almost American
Chickennbeans wrote: You have 1+kW of solar and battery capacity at home?
Well your house uses on average 20-30 kW/h per day.
Deal Fanatic
User avatar
Nov 13, 2010
7382 posts
1553 upvotes
Scarborough
This article is pure crap
Everything’s up in price. Even price of gas is getting back up slowly to pre-corona prices
Price of food is up (which everyone needs)
Deal Addict
Jan 12, 2017
1456 posts
761 upvotes
I'm partially on solar, but haven't found storage capacity very cost friendly - What do you use to bridge non-solar hours (and for most people, when they would charge a plug-in)?
expresspotato wrote: Well your house uses on average 20-30 kW/h per day.
Deal Addict
Jun 4, 2013
1094 posts
335 upvotes
Vancouver
jdaking wrote: Really? The only thing I buy now is groceries and I have noticed price keep going up in the last few years and few months.
Yup and there aren't many items on sales too. I guess why put them on sale when the shelf is always half empty and most stuff are out of stock.
Sr. Member
Feb 8, 2015
590 posts
643 upvotes
Kanata
I think we need to look at their basket break down because everything has a covid fee now.
Deal Addict
May 16, 2017
2017 posts
2616 upvotes
garmium wrote: I think we need to look at their basket break down because everything has a covid fee now.
Cost impact of COVID - maybe - a "COVID Fee" - no, not really.

https://www150.statcan.gc.ca/t1/tbl1/en ... 1810000201

Compared to PREVIOUS month (note, the overall stat on inflation is compared to the same month a year ago).

Beef up,
Chicken down,
Gasoline up (but way down from a year ago),
...
Deal Addict
May 2, 2013
1959 posts
3944 upvotes
Bloor-Yonge
good time to buy clothing and furniture.
Jun 17, 2020
On the whole, however, many items saw their prices plunge in May after cratering the month before, too.

Clothing prices fell by another 1.8 per cent, bringing the two-month decline to 7.6 per cent — the biggest plunge on record, Reitzes noted.

Shelter costs fell by 0.3 per cent, mainly because of a 0.8 per cent decline in rent, the biggest drop in rental costs in 70 years worth of data. And the price of phone services and furniture fell again, by another 2.4 per cent and 3.3 per cent.
https://www.cbc.ca/news/business/inflat ... -1.5615362

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