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
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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 Addict
Jan 21, 2018
3401 posts
3515 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
7405 posts
3519 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
3947 posts
1603 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
556 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
28 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
776 posts
459 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
2315 posts
1114 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.
Jr. Member
Oct 11, 2013
188 posts
54 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
1049 posts
492 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.
Jr. Member
Oct 11, 2013
188 posts
54 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
6755 posts
1244 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
1049 posts
492 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.

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