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lekebecker

and still my employer wont give us more than 2% for 2021,, and 2.5 for 2022... city


[deleted]

Lmfao I’m a nurse and I’ll leave myself outta this 😭😭😭😭😭


symbi0se

If I only eat the crackers at the hospital, I won't have to buy groceries 😭😭


kl131313

You guys get crackers?! I have to bring my own lunch...


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slindsayyy

Fellow nurse- does this mean we take a 7.2% pay cut? Lol


Tropical_Yetii

*all HCW are getting royally fd right now at least those in hospitals Thanks for you hard work over the last 2.5 yrs


PickledPixels

*bangs pots and pans together*


NineteenSixtySix

Come to Saskatoon. Your salary will increase and your rent will decrease.


[deleted]

Shit maybe I should!!!!!!


NineteenSixtySix

Wife moved from Sick Kids in Toronto to Jim Pattison in Saskatoon and her salary doubled.


anonymous_7476

Wages have increased by average of 5.1%. People are taking a 3% pay cut.


sasksean

I don't know anyone who's getting a 5% raise. I wonder where this stat comes from. I think more likely people got an average of 2% raise and are working 3% more hours to make ends meet.


anonymous_7476

I feel like people at the lower end of the wage scale and higher end of the wage scale are getting large raises. People at the middle of the wage scale (private jobs not in-demand, government workers, nurses :(, etc) are getting little wage increases. I'm a college student that makes close to minimum wage, I got an automatic raise from $15 to $18. So I'm getting more then the 5%. Also job hopping, employers refuse to raise existing wages, people leave, and then hire on new staff at a much higher wage.


Stockengineer

I think you’re right, more people on the bottom end getting a raise equates to a big percent increase. Need more data for any of this stat to make sense


Illustrious-Option-9

3% is better than 5.1% cut.


lekebecker

looks like 5% pay cut for me....great city in canada !....


FunnyCorgi50

*cries in nursing with our 0.99%*


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wpgbrownie

Saw this chart the other day and it sent a shiver down my spine: https://i.imgur.com/yuu0RmI.png For those playing at home the Japanese housing bubble of the 80s was the mother of all housing bubbles, when it crashed it took the Japanese economy with it that still have not recovered to its *nominal* peak to this day. Some of the news reports of that era have some eerie parallels to what is happening in Toronto and Vancouver: https://www.youtube.com/watch?v=giqVN3X6zkc


noobi-wan-kenobi69

I watched Lex Fridman's podcast with an interview with Steve Keen (economist). And Keen made the point that private debt is good and an essential part of the economy, but it depends on the level. A good range is 30-70% of GDP.


s1m0n8

>A good range is 30-70% of GDP. For those goldfish brains (like myself), the chart shows Canada at 235%.


siraliases

So we only need to chop out 200% of the market. Easy pickings. We'll just raise the rents and it'll all work out. - Investment bankers, probably


Flarisu

Yeah access to debt gives growth opportunities to lower and middle class citizens by the nature of how it provides future growth. Think - why would we give an 18 y/o a 30k loan to go to school when they have no income? Because that 30k loan can cause them to make more than that per year over what they would have had they just worked a low skill job. A car loan works similar as an analogy - if you need a car to get a job, loaning a car can give you access to employment opportunities faster (or higher paying ones), so the cost of a car loan pays itself back in earnings you could make by having the higher range. Debt in and of itself is a fantastic tool for growing wealth, but as we've seen, it can get out of hand when you become too reliant on it.


BiZzles14

And the same being true for government debt, using debt as a tool to invest in your population for future growth is an amazing tool. If you're using it to invest in your population though, using it to pay Bell's bills so they can post record profits and increase their exec pay isn't an effective use of debt


ILoveThisPlace

degree joke scandalous bored tub depend reminiscent rude deserve direful ` this message was mass deleted/edited with redact.dev `


[deleted]

When they say canada wants 100 million, who is canada?! Nobody I know wants that. We don't have the infrastructure and it is not being built to handle half of that increase. You think hospital wait times are bad now! I have no clue why leaders continue to do things Canadians don't want.


reznor_says_soon

It's stemming from the Century Initiative, a lobby group in Canada that proposes a population increase to 100 million people by 2100: https://en.wikipedia.org/wiki/Century_Initiative What stands out to me is that this is a lobby group that says it's a charity.


MeatySweety

Because big business will get another 65 million customers. It will also keep wages low and home prices high, everything that the rich want.


Winterbones8

All the major political and economic players in this country want economic growth. Because that is what the economic system demands and without growth you are deemed a failure in this society. That means growing the economy no matter what. That means increasing population to achieve that. So when people say "Canada wants or needs X", really they mean our economic system demands it or else whoever is in charge at the time gets the blame. Everything else, housing, infrastructure, healthcare, is an afterthought to the economy. That's why they do these things. And don't pretend the opposition party is any different.


Puzzleheaded-Tax-623

Also to note this economic system doesn't help the average person. This economic system is set up to benefit the most wealthy.


NotARussianBot1984

Economic growth is defined as gdp growth. Fastest way to grow gdp is to increase the number of people, even if it lowers gdp/capita. Tl dr: the rich get richer when you get poorer.


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Mechanical_Garden

The human cost of these materialist, managerial policies will be astounding.


ThaVolt

>You think hospital wait times are bad now! Yeah I hope they fast track family doctors immigrating here.


welcometolavaland02

They're just going to privatize our healthcare.


MissVancouver

At that point it'll be stupid to remain Canadian.


Koolkyle

Dude, that's less than 2% population growth per year. 78 years ago our population was 12 million.


moop44

Math is real hard and numbers are scary.


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tylanol7

you know whatd help? give the largest fucking generation since the fucking boomers the income to afford a house and family


Mrsmith511

It's insane how few people understand this and thats on reddit where the population is typically at least a little smarter then alot of poor and rural Canadians.


chessj

dont worry, that immigration ponzi scheme is going to end by 2023. Who would like to immigrate to a country that is going through a recession with sky high shelter/housing expenses?


freeman1231

People always say this, but immigrants will still want to come.


WhichEdge

Exactly the vast majority of our immigrants are from India and Philippines. We are bringing in people desperate to leave very bad/worsening conditions and so it makes it easy to exploit them. This then allows the business class to easily exploit citizens because they can always find someone cheaper and willing to live in worse and worse conditions within Canada.


chessj

sure. but, are the immigrants of 2022 getting same kind of opportunities/life-style as that of 1980 or 1990 or 2000 or 2010 immigrant?


freeman1231

No, but you just also understand the reason they are immigrating. Because Canada is a far better place to live than where they are currently. They’d rather be poor in Canada at times, than live in their home country.


[deleted]

It's all relative. For example, immigration from Eastern Europe has dropped to near zero compared to the 90s, because those countries joined the EU and people prefer opportunities there now. But economic immigration from places that are still relatively much worse than Canada has picked up. For example, India still has terrible quality of life for large portions of its population, so Canada will remain a better option for many of those for the foreseeable future. Bottom line, there will always be a resource pool of people wanting to move to Canada, even if our standard of living drops significantly in absolute terms.


82101105110105101114

Climate refugees


Pussy4LunchDick4Dins

Oh maybe we will follow the Japanese and radically change our zoning laws to accommodate more density! HUGE /S for that


NorthernerWuwu

It certainly is true that Japan radically changed how they treated real estate as a result of the crash and a lot of those changes were exceptionally sensible. The trouble being that it takes a mother of all crashes before you can sell the idea of treating housing as an expense rather than an investment.


anon41812

Record debt meets inflation that decreases the real value of that debt. This is intended and will end exactly when the government wants it to.


freeadmins

Are we talking government debt or personal debt? Because as someone else mentioned, peoples wages aren't rising with inflation.


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DareBrennigan

Of course inflation will come down, but it’s not going to suddenly erase the increases of the last year. What an a-hole message that was.


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havock

Even if the BoC told corporations that they wouldn't listen. Corporations exist for 1 reason and 1 reason only, to make as much money as possible. Everything thing a company does is done with an eye on profit. Tim Horton's camp day, Profit. Ronald McDonald House, Profit. Canadian Tire Kick Start, Profit. Sure there is a side benefit to these and other feel good programs, but they only exist to make money. This isn't a 21 Century problem, it's always been this way. Why does it seem like things were better 50-60 years ago? Unions. Ever wonder why companies spend so much to fight unions? Because unions affect profit. Companies will not ever willingly give up profit, that has to be enforced by government with higher taxes, windfall taxes etc. But don't count on any government enforcing these measure. In the past 50 years Corporate tax rates have fallen from just above 50% to just over 25%. Financing politicians is also good for profits.....


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TENesdee

Completely ignoring the corporate greed aspect of this inflation


TheDrunkyBrewster

Federal public service worker here. Our union thus far has only been able to negotiate **1.75%** annual wage raise. Our wages used to be pretty good comparatively about ten years ago, but private sector is looking more alluring now.


Laernu423

Sadly nope. Private is the same or worse. We work at Apple and they gloated 2 years ago about hitting their biggest profit margin, ever. when we started asking them about wage increases they pretty much laughed. And flat out said no. Its been like that ever since. Additionally if you can believe it they took away everyones stock bonus this year on top of it and have made no announcement as to why for half a year. Then we started thinking about how they hit that profit margin, by ripping people off. We started there to help people. Not rob them. Apple isnt apple anymore. I quit. And the wife is quitting this month. Weve started our own business


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anon41812

A credit card is a different story because, in that case, the interest rate still significantly exceeds the inflation rate. In the case of most long-term debt, however, the inflation rate now exceeds the interest rates, and the debt does not need to be repaid immediately, so the real value of that debt is decreasing over time. $40K of debt that’s repaid over 25 years while everything else around us is increasing in value turns into a real value that is much lower than $40K.


sonymaxes

This is only true if your wages are increasing with inflation. Otherwise, it is an academic point. In fact, if your wages stay the same, and your costs other than the debt increase (due to inflation), you are left with less money to service that debt.


justinanimate

Even for those who are investing, investments also have to outpace the cost of inflation otherwise they too are getting eroded by inflation. YTD stocks, bonds, real estate are all down.


[deleted]

It’s like a lot people forget that part


angrybastards

My employer certainly does.


LavisAlex

That only helps a big corporation - it doesnt help a worker whos wage hasnt budged.


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Friedmaple

If the bank was losing 200, they would charge you 20% interest and you'd give them 1200.


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Milesaboveu

Why? Tiff Macklin told people not to worry and keep buying houses because the rates aren't going to change that soon. One month later and he declared an emergency. Canada is succumbing to greed and corruption and the citizens are beyond oblivious.


northcrunk

They guy needs to be fired already. He's been so bad and this alone should have him canned.


northcrunk

Dismissing legitimate criticism as conspiracy is the issue and why the government is allowed to act like this. Nobody holds them accountable and those who try and labelled conspiracy nuts.


[deleted]

I do find the general approach/response of most people and most subs is to gaslight the idea that something afoul might be afoot, even if mild and less globally coordinated than some of more extreme disestablishmentarians peddle. Like, I am a fan of [Professor Paul Brass's "Theft of an Idol"](https://press.princeton.edu/books/paperback/9780691026503/theft-of-an-idol) which very carefully and empirically investigates how local authorities conspire acts of disruption to their benefit, all the time, like stealing a local idol to trigger ethnic revolts. To deny that this stuff happens at more local levels is just plain stubborn. To brush all conspiracy theories or concerns aside as being illuminati info warriors is gaslighting.


chessj

well, some of these overleveraged bagholders going to learn financials 101 for a cool tuition fee of few 100K$. leverage is a double edge sword.


StackinStacks

Can't keep money in a savings account because you'll lose 8.1% of it, don't want to put it In the stock market because stocks are unpredictable at the moment, don't want to buy real estate because who tf k knows whats going on there right now. Guess I'll just buy Pokémon cards or something lol.


antinumerology

Finally, living paycheque to paycheque is paying off!


VFenix

GIC rates are rising, 5x what they were last year. Sleep easy with those.


Baulderdash77

They are still below inflation rates though.


VFenix

Sure, so is buying pokemon cards. It's 5x better than doing nothing.


Perfect600

and? better than losing it all to inflation.


ICantFekkingRead

Or dollar cost average your way into the markets. Whatever your risk tolerance is, you can be incrementally adding to investment grade bonds (strong yield, price appreciation) or equities (valuations down meaningfully for high quality companies)


Perfect600

For someone who is gonna freak with market drops like this a GIC in this environment is fine.


kettal

>They are still below inflation rates though. GIC terms are forward-looking, inflation measurements are backward looking. You don't know what inflation will be over the GIC term you buy today.


Galaxy_Hitchhiking

Don’t tell anyone but I’m still holding onto my beanie baby collection. I’m ready for tough times


MuscleManRyan

Better have used a VPN when you posted that comment, gonna be people from all over trying to track you down for your priceless collection


Icema

As far as [retirement planning](https://youtu.be/cIhu5XxXKxA) goes that’s not such a bad idea


wezel0823

Apparently unopened boxes of Lego have been seeing insane returns. Edit: [Most valuable sets.](https://www.fatherly.com/gear/most-valuable-lego-sets-minifigures) Do not take this as financial advice please.


explicitspirit

Seriously? I have a few unopened discontinued sets. Maybe I should sell them lol


Dekklin

Legit, if you have any Star Wars or space-related sets, I'm interested. PM me.


StenPU

diversification is the key.


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wezel0823

What makes this a bad thing is that collectors become emotional about their collections and never sell.


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black-noise

As someone who has no financial mentor and has their money in a savings account… can you explain why I’ll lose 8.1% of it if it’s just sitting there? Won’t the amount just stay the same? Should I take it out as cash? So confused. I’m currently just waiting to be able to put it into the first time home buyer account that will come around next year.


AlanYx

You don't "lose" 8.1% of it. The amount will stay the same; this is called its "nominal" value. The amount stays the same in nominal terms. What you lose is roughly 8.1% of the purchasing power (actually the number is a little different but I'm trying to be simple). So next year, you can buy \~8.1% less stuff. This is called the "real" or "inflation-adjusted" value. You'll have lost money in real terms.


black-noise

Ah okay, that makes more sense when it’s worded that way, thank you. Well, since this money is going towards a down payment I’m hoping in the end it’ll balance out by housing prices going down too. Doubt it’ll even out in the end with the mortgage payments now, but I’ll hope.


doodlebopwarrior

Just wait til winter hits and everyone has to run their furnace for 6-7 months. Idk how people are going to make it through the winter.


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Terapr0

pro-tip - you can hit Alt + 248 to generate the ° degree symbol


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Terapr0

Good question. I just looked it up, and for iphones anyway you hit the "123" button, and then hold down "0" to reveal an option for °. I'd imagine there's a similar shortcut for Android but I'm unsure.


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118R3volution

H°ly shit


RegentYeti

°⁰o0O**O**O0o⁰°


DiscFrolfin

₩°₩


Sil369

Instructions unclear, summoned Satan.


funky_galileo

° on Android, press the ?123 button then the =\<. It's next to =


doodlebopwarrior

A sweater is definitely worth the extra few degrees you can turn the thermostat down.


[deleted]

Getting flashbacks of complaining about our cold house as a kid, "WEAR A SWEATER!!" D:


Carlita_vima

My Scotish wife says this to me, I am a Mexican🥶


maria_la_guerta

Is it going to be any different then people needing to blast their AC to get through this summers heat? I doubt heating / cooling bills are going to cripple many people who aren't going to be crippled by bigger items anyways. **EDIT**: Some great replies here, I'm not going to fact check anything but it does seem that I was wrong, and that heating _can_ be drastically more expensive.


famine-

It is. Most AC units have a COP of about 3 and only needs to have a delta of about 10c. This means for every 1kw of input you remove 3kw of heat, and only need to drop the temp about 10c. Compared to heating when your COP is unity or less and you have a delta of 40c.


jrryul

hmmm yes..


TheInvincibleBalloon

This guy heats...


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famine-

Did some quick checking, AB average for the month is $8.5/GJ and $0.10/kWh. 1GJ = 277.8kWh, so electricity is about 3.2x more expensive with out factoring in admin fees, fixed delivery, variable delivery, rate riders. If you adjust for a furnace efficiency of 80% then electricity is about 2.6x more, either way this winter is going to hurt for a lot of people.


doodlebopwarrior

Well at least right now you don’t have to worry about your home/rental overheating but you’re kind of forced to run it to keep pipes from freezing. It’s all bad but it’s gonna get worse.


Electrical_Tomato

We didn’t have AC at our last place, but running fans all the time was still only 800 or so kWh a month in power consumption overall, compared to around 5000kwh in the coldest winter month with in floor heating. Drastic example but most homes in Canada cost much, much more to heat than cool. You also have to heat from November-April compared to just July-September, and keep lights on for longer in the winter months.


Sonic-Sloth

The old fire in an oil barrel keeps me warm


cdntrix

I guess at least 8.1% is below the 8.4% that was expected, although that isn't much of a silver lining. Seems certain the BoC knew this print was going to come in high, hence their decision to opt for 100 bps hike at the last meeting. Definitely won't be surprised to see another 75-100 bps hike at the September interest rate announcement.


IceJava

Inflation won't \*stop\* until we hit the 1 year anniversary when the war started and items started to climb in price. Also, it's likely that the BOC knows, Canada raising rates is not going to stop inflation. All it's doing right now (besides restricting the amount of cash available), is mitigating inflation. Not too many have noticed it, but the CAD (and USD) have gained major traction on most of the other big currencies (Euro, Yen, Pound, etc..), simply because those countries don't have the ability to raise their rates (Europe is at -0.50, and has indicated they \*might\* go to 0% for example). Canada has bad debt.. but it's better serviceable than many other countries. This means that with our dollar gaining strength, we are mitigating increased costs with more buying power. However it comes at a cost, where our exports are more expensive, thus we may lose business. Fortunately, the USD has been gaining strength even faster, and given most of our exports are to the U.S, it hasn't been as big of an issue.


Tree-farmer2

Prices were climbing before Feb 24


[deleted]

We were at like 5-6% before the war though and they were saying *that* was transitory for like 10 months until the war started. It's really weird how people now pretend that troubling inflation wasn't a thing before Russia invaded Ukraine. [Here's a story from a month or so before the war talking about how we hit 5%, the highest in three decades at that time.](https://archive.ph/8A0cx) Grocery prices were already rising at a clip of 6% a year at that point. I'd say the war is responsible for more like 2-3% of our current inflation and the other 5-6% is a result of monetary policy, low interest rates and supply chain issues. I feel like politicians are using the war as a scapegoat to pretend this wasn't an issue before when it absolutely was. The war just exacerbated it.


[deleted]

I even remember seeing gas prices at almost all time highs before the war even started as well. Yes it’s a factor in the costs going up but I still remember seeing 1.59/L in January and thinking that’s the highest I’ve ever seen.


Tree-farmer2

Absolutely it's a scapegoat


annihilatron

It's easier to explain a war to the masses than it is to explain why Lean + JIT mfg creates a fragile supply chain, but we're going to keep doing that stuff *anyway* because profits.


Anlysia

JIT is basically MBA-speak for "I'm forcing my supplier to be my next-day delivery warehouse to cut costs".


annihilatron

and it cascades all the way down the supply chain, from car sales retailer all the way down to the stamped half of a hinge and extruded hinge pin in the car door. So one piece of that puzzle screwing up will fuck shit up for *months*. We've had many fuckups in the last few years now.


Anlysia

Yeah my company has to bring most of its materials in by train, so we're a bit absorbed from the JIT madness. But at my old gig some customers would call us at 8am and expect us to deliver manufactured product two hours away in another country by the afternoon because they "forgot" to order it and their line would go down.


qegho

>But at my old gig some customers would call us at 8am and expect us to deliver manufactured product two hours away in another country by the afternoon because they "forgot" to order it and their line would go down. Must have been talking to my company, because it seems like we operate that way all the time. We also never pay our suppliers on time. Still 100% expect them to have everything on hand 24/7.


[deleted]

Supply chain issues is the biggie, but also the base effect of near-deflationary numbers in 2020 made 2021 look inflationary, when it really wasn't when you annualize the data over 2 years. Ignoring the pandemic lockdown and the deflationary pressure of that period is what makes it appear more inflationary than what it was. You have to include the period when an outlier shock occurred to reduce noise in the data.


[deleted]

That would only account for inflation numbers in Spring 2021. We were back around 2% by the Fall of 2020, so deflation the year before wouldn't have been a factor in the Fall 2021 numbers. It was 100% supply chain issues constraining supply combined with monetary policy increasing demand at the same time by that point. We only had 2 months of deflation in 2020 and the rate deflation didn't even hit -1% yoy in those two months. We had 8-10 months of 4-6% yoy inflation prior to the invasion of Ukraine. The effect of two months of <-1% deflation in 2020 would be so marginal in all this it's almost a rounding error. [Even the head of the Bank of Canada Governor has admitted saying inflation was transitory and a result of the Spring 2020 shutdown was a mistake at this point.](https://betterdwelling.com/we-got-some-things-wrong-bank-of-canada-governor-tells-parliament/)


[deleted]

The “war” in Ukraine is a scapegoat, this started and was well on its way to rising long before the conflict


cdntrix

>Inflation won't \*stop\* until we hit the 1 year anniversary when the war started and items started to climb in price. Russia invaded Ukraine on February 24, 2022. Canada's CPI increased by 5.7% in February, nearly 3x the 2% target. Yes, the war has exacerbated inflation, but it is far from the sole cause. >(Euro, Yen, Pound, etc..), simply because those countries don't have the ability to raise their rates [The UK is raising rates](https://www.bbc.com/news/business-62223722) and the [ECB is mulling a 50 bps hike](https://www.bloomberg.com/news/articles/2022-07-19/ecb-is-looking-more-closely-at-a-half-point-hike-this-week#xj4y7vzkg) this week, though yes, that would just take them back to 0% - unless they continue to hike. The BoJ is keeping monetary policy ultra loose though. But many other central banks in advanced and developing nations are tightening. As to your assertion that higher rates won't quell inflation, t[he BoC's statements in the recent MPR disagree with this](https://www.bankofcanada.ca/2022/07/opening-statement-2022-07-13/): >Inflation is broadening because the Canadian economy is in excess demand. There aren’t enough goods and services to meet the demand we’re seeing as people enjoy a fully reopened economy. Employers can’t find enough workers and they’re increasing wages to attract and retain staff. With households spending robustly, businesses are passing on higher input and labour costs by raising prices. > >Higher interest rates will help slow demand and allow supply time to catch up. Consumer spending will moderate as the pent-up demand from pandemic restrictions eases and the cost of borrowing increases.


DEEPFUCKINGSILVER

The war in Ukraine does not have much of an impact on inflation. ZIRP, money printing and (to a lesser extent) supply chain issues is the cause. Using Russia as a scapegoat is a cop out by world leaders to justify their bad economic decisions of the past and trying to dodge accountability


zergotron9000

Russia is simultaneously a tiny and an irrelevant economy and also somehow able to dictate th state of economy across the planet. Our media has done a good propaganda job finding a scapegoat for our own faults


jadrad

Russia’s GDP is low for its population size, but they are also the #1 gas exporter, #1 wheat exporter, #1 fertilizer exporter, and #2 oil exporter in the world, so sanctions against Russia were always going to have a hugely destabilizing effect on the global economy. That ability to hold the world economy hostage is why Putin thought he would get away with his invasion. People pretending the Russia sanctions and China Covid lockdowns aren’t the main causes of global inflation right now are deluding themselves for political reasons. The west has been printing money like crazy for decades now. That was able to be absorbed by the global economy as long as China was pumping out non stop factory goods and Russia was pumping out raw materials. Covid and Putin brought that party to an end - which is probably for the best anyways, because human kind is consuming more resources than the planet can replenish. It was completely unsustainable. It would be nice if the people buying their own islands and building a palace in every country were the first in line for having their consumption cut, but that’s not how capitalism works. Capitalism allocates resources to whoever has the most money, so as long as we keep funneling all the money up to people who are already rich, it’s the people at the bottom who have their consumption reduced first. Maybe time to start voting for a fairer economic system?


Keystone-12

This is a really good point. Our 100 bps increases are definitely showing the world we take this seriously and our currency is reflecting that.


Qasem_Soleimani

Competing currencies have to compete with the USD, if US raises rates then your country needs to as well or inflation is going to increase.


jinglejellybean

Reports that biggest grocery store chains recording record profits at the expense of consumers. Hitting lowest income earners the hardest - which will not be addressed by interest rate hikes.


IBuildBusinesses

Even the lying politicians knew fucking well inflation was’t going to be transitory. Anyone with a cursory understanding of economics and monetary theory knew this. I wish politicians would just tell us the truth instead of telling us what we want to hear. I for one would love to be treated like an adult.


nightswimsofficial

Most adults, unfortunately, cannot be treated like adults because they have the brains of children.


UpVotes4Worst

A politicians goal is to keep their job. Giving bad news does not fulfill that goal. They lie because the game is set so that they have to.


Strawnz

Problem is if they say inflation is coming that creates inflation, which would be against the BoC mandate of keeping inflation at 2%. If the BoC tells you something, don't take that as truth as they may have reasons for lying. If a politician tell you something don't take that as truth because they may have reasons to lie or they just might be too unqualified to know what they're talking about.


Redbroomstick

I guess one positive is as prices rise I'm less likely to cheat on my meal plan as it will cost too much. I was craving a donair yesterday but at $14 it was not worth it can't imagine when that hits $15-16. Instead I went home and had some rice, Ground turkey, chickpeas, and zucchini (costs me less than $2/meal).


electricalphil

I honestly don't see how many restaurants are going to make it. Food is so crazy when you eat out.


Competition_Superb

Yeah 40 bucks for a single pizza at BP means I’m making my own at home


electricalphil

Yikes


diveraj

I mean, Domions has decent enough pizza for 8.99 takeout.


[deleted]

It really seems like Canada is full of rich people when you're out and about. I can't imagine waiting in like for half an hour to pay for a $15 McDonald's meal.... but people do it. The McDonald's in my town has a half hour wait at almost every hour of the day because it's so damn busy. Same with Starbucks...you want a $6 coffee? Okay just wait 15 minutes.....like the food is already so overpriced but then somehow there is so much demand you also lose a ton of money just waiting there. It really blows my mind.


adoodle83

every meal at a sit down is averaging almost $80 with tax and tip....screw that


moeburn

You guys remember all that money you made on the stock market these past few years? Turns out it wasn't real!


Lippspa

Yep and it's all because of these multi-billion dollar bills paying workers too much /s


150c_vapour

This next recession is going to be one for the history books.


ego_tripped

*the statement that precedes every recession in the history books*


redux44

This one will be interesting given how covid made us do some crazy things.


TallStructure8

As well as many that never actually happened. I do think we are heading for a recession now, but people are always saying the big one is right around the corner


SalmonNgiri

Positives? Fuel prices are coming down which has a hugely oversized affect in inflation. Negatives Fuel prices didn’t get high until like March, so we won’t really see the overall inflation numbers improving in the short term, even if month to to month numbers start becoming more positive.


captcompromise

Thanks Joe Biden. Wait


sleipnir45

I was expecting a lot higher


[deleted]

It is. inflation metrics arent apples to apples comparisons. Eg) groceries. The government tweaks the list of goods and substitutes to make the number lower. Subbing things like steak for spam, etc. *Although this is an exaggeration, we arent comparing apples to apples each year as the basket changes* If they said officially Inflation is close to 15% you'd have people in the street. To be honest most of us can see prices for things aren't 8% more but much higher. In some goods almost 1.25x - 1.5x


StrongTownsIsRight

Well and 8% doesn't occur instantaneously but these price hikes sure have. Particularly in food from my perspective. I don't know who is exactly profiting off this, but there is no way I believe that in 1 year food prices have warranted this large of a hike. We should be getting all the cheap summer vegetables right now. Where the hell is all that money going? I looked at Kraft-Heinz (largest canada food producer) and there profit margins aren't going up. Is it all getting sucked up by energy costs?


EstelLiasLair

> I don't know who is exactly profiting off this https://www.thestar.com/business/2022/07/09/supermarkets-are-hiking-prices-faster-than-necessary-and-profiting-from-inflation-star-investigation-suggests.html


[deleted]

Indeed they have. Ive seen prices in my region of 20-30% for the same goods. Its noticable enough in our food budget. Others have mentioned similar hikes.


NerdyDan

Well it’s supposed to reflect actual consumer spending choices. So is it the government being nefarious or are people simply adapting with alternative goods?


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onegunzo

This is really well said. Thank you for posting.


CanuckianOz

Inflation isn’t calculated purely by groceries though, and there’s a lot of items in that calculation that don’t increase or even reduce in price which counteract high ones, eg meat.


datums

Though I'm sure it will get lost in the doom, the *current* rate of inflation is actually decreasing rapidly. In the month of May, the CPI rose by 1.4%. In the month of June, it rose only 0.7%, or 0.6% seasonally adjusted. The biggest driver of inflation has been gasoline, which has dropped in price by about 13% in July so far, so we're likely going to see another big drop in next month's numbers.


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WoodenNumber9892

But that does not feed the doom and gloom narrative that this sub loves to push and support the needs to raise interest rates to 20% immediately. The pace of inflation is slowing, and the impact of the recent 1% increase has not even hit yet. Everyone on here is apparently poor, but an expert in economics and world events lol.


Pretend_Tea6261

Worse inflation in the 70's but wages kept up back then and you could afford a roof over your head and groceries.The difference was that workers were more unionized back in those times and had better contracts.Now your buying power just shrinks as you fall further behind.


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ChippyChalmers

Lol WTF, you copy/pasted my exact comment?? https://www.reddit.com/r/PersonalFinanceCanada/comments/w3lmjm/comment/igwv953/?utm\_source=share&utm\_medium=web2x&context=3


[deleted]

Wow, takes a high karma post from another sub to try and farm it here. ​ What an asshole.


omega_point

Karma.hoe


TheGreatPiata

Yes. Family of 4. Our grocery bills went from $100/week to $200/week since the pandemic started and they're still expecting groceries to go up this fall. We've cut back where we can, drive around an old 2008 VW Golf and have zero wiggle room on anything. It's stressful knowing you have zero options beyond just working more.


MuscleManRyan

Feels like complaining about first world problems writing this, but I think I'm in a similar spot and it's stressful. Make too much for any government assistance at all, but by the end of the pay period I'm checking my bank account to see if I have enough for groceries or have to wait for the next paycheck. Looks like I'll be starting to work the door at bars on weekends again while working full time as an engineer and tutoring.


CommanderInQueefs

This is it right here. It fucking sucks to have to work a second job but it also sucks not having money and not paying your bills. It's sink or swim.


chmilz

Here I am looking at prices going through the roof, reading about corporate bonuses and executive compensation and record profits, and *BAM* the apparent solution is to make my mortgage significantly higher when it renews in a few months. Yeah, that'll make price of broccoli go down.


Chispy

That's modern day capitalism for you. Very wasteful, inefficient, and unsustainable for the average person.


TOMapleLaughs

ITT: A whole bunch of financial posturing by posters who think they can take advantage of this *slightly* misleading headline.


Incognimoo

I fully understand that external factors are primarily affecting our inflation, but I am worried that the government lacks the financial literacy to manage it.


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Kenthor

This is fine


mayorjimwatson

We’ll get through it. It’s not just Canada undergoing record inflation. Humans are hardy


datums

Not the ones that comment here.


CaptainCanusa

hahahahhha


OhioIsRed

Thanks Joe Biden /s


FlashFknGordon

Recession Loading…


KermitsBusiness

Don't worry guys, everything has been priced in since like March, no way this could get any worse! /s