After the elation of the budget we now come to the Consumer Price Index for February, and to quote Frank Barrone, Oh Crap! Yup the CPI elevator is going up again. It is now up to 2.0% year over year up from 1.2% last month (year over year) . That is one hell of a jump, and guess what is to blame? Gasoline, my friends, yes indeed, the black gold that is causing the Canadian Economy to go into hyper drive is also driving up the consumer price index.
Surprisingly the CPI in Ontario is only 1.6% which is interesting, given our gas prices shot through the roof (up 9.8% from January to February) thanks to the “shortages” caused by that refinery fire (I note gas prices are still around $1/liter these days). A good wood worker uses a gouge, but I didn’t know it was part of standard business practices too.
Why should you care, no it’s not inflationary, yet, but if that comes, then interest rates go UP, and then we see if the U.S. economy can withstand a high interest rate or not. My guess is NO, and the rest of the world is going to pay for that one too.
Oh and on a different note, remember to Give Blood the next time you can. I am supposed to give today, and this will make my 8th donation (which isn’t much considering the last time I gave there was a chap there who had given almost 100 times). This is a gift that helps people you don’t even know, and you are helping them LIVE, so it is an amazing gift, give, if you can.
