Heard a bit on a podcast today about how Canada's core inflation is stuck below target range, while total inflation, which includes volatile food and energy prices, is above target range.
I haven't verified that at StatsCan, but that's the reason why many commenters are feeling the Bank of Canada jumped the gun on raising rates.
I dislike the current practice of using ONLY interest rates to target ONLY inflation. Other places include employment levels as part of their interest rate calculation. There are other tools for price stability, but they've all been tossed out by neoliberalism, the extreme form of capitalism currently practiced.
That's led to the current mess, where capital returns are too high, and labour share is too low.
Know what else checks economic growth and inflation? Business and capital gains tax increases!
@johnefrancis Tiff Macklem is an awesome name though.
"My name is Macklem. Tiff Macklem. And I'm from the Bank of Canada."
Oct 29, 2026, 2:55 PM@NuanceRhymesWithOrange @johnefrancis
Shaken, not stirred.
Oct 29, 2026, 6:48 PM@johnefrancis The issue I have with the rate hike is that inflation, as you say, is being driven by energy profiteering through supply shortages caused by the US's war of choice.
The classic inflation scenario is when people have too much money and they're buying too much, outpacing supply. This can be addressed with rate hikes, to curb consumer spending.
Our current situation is a supply side disruption at a time when most households are already falling into poverty. A rate hike does nothing but cause additional hardship on people.
@zazzoo @johnefrancis Monetary policy expressed as inflation targets by central banks is a central pillar of the neoliberal command economy. The acceleration of inequality is a feature, not a bug.