Consumer Price Index at 2.2% for May
Yes, inflation is on the rise folks, up from 1.7% in April, hope you aren’t surprised, because I sure as shooting am not!
For those who wish to note the obvious, from this month’s report we have the following statement:
The acceleration in consumer prices in May was mainly a reflection of the 12-month increase in gasoline prices. This acceleration in gasoline prices occurred as crude oil prices almost doubled between May 2007 and May 2008. Gasoline prices increased substantially across the country, rising the most in Quebec and Ontario.
I’ll take “State the Obvious” for $1600 Alex. This is only the beginning folks and this is going to trigger a reaction in interest rates, I think this might be time to start partying like it’s 1974, because we may be hitting that “tipping point” (to use an overused and trite term) and may be heading for some heady inflation rates real soon.
Property Tax Day in Ottawa
Given that the Hockey Night In Canada theme’s rights are already owned, I am curious what tune I might play as the theme for Property Tax Day in Ottawa (feel free to add ideas in the comments section), I’ll settle for the Beatles “Tax Man”, for now.
I had a look at my second payment for my property taxes this year, and I am struck by a few major points that I hadn’t noticed when I first bought it.
The City of Ottawa thinks my house has appreciated in value over the past 8 years by over 50% (if you calculate this by ( (New Price – Old Price) / Old Price ). I have done some work on the house, mostly upkeep things, but what would cause such an astronomical increase I have no idea. Yes I am living in one of the fastest growing suburbs in Canada (Nepean/Ottawa South), but new houses are going up around me faster than mushrooms in my back lawn!
There are a plethora of other interesting charges on my tax bill:
- Solid Waste Curbside pick up fee of $82.00, interesting, and I guess I don’t mind that, given I don’t want to go to the dump every week to drop my trash off.
- I am paying the Conservation Authority about $20.00, my only wish would be that they keep the Canada Geese and vermin in the parks and not in my backyard.
- A Capital Tax Levy, which I think is translated to “Give us more money dammit” of over $40
- Standard fees for Fire, Police, Transit and the actual money that goes to the City of Ottawa so they can afford all the interesting services they offer.
Am I getting good bang for my buck here? I guess, I do like the libraries a great deal, and we do use the recreational facilities a great deal. I just drove into work on the roads that the City supports, so I guess I should be paying for those as well, so I guess I am getting a bargain? At the end of it, I am paying %3.5 of my gross income on this.
When it comes to property taxes and other types of taxes, just be thankful that you don’t get all the government that you pay for 🙂
So, it looks like the Bank of Canada was correct in it’s call to keep interest rates even this past announcement. So far so good with this new Carney fellow.