{"id":11174,"date":"2023-07-24T06:35:52","date_gmt":"2023-07-24T13:35:52","guid":{"rendered":"https:\/\/www.stevesaretsky.com\/?p=11174"},"modified":"2023-07-24T06:36:04","modified_gmt":"2023-07-24T13:36:04","slug":"a-price-to-pay","status":"publish","type":"post","link":"https:\/\/www.stevesaretsky.com\/2023\/07\/news\/a-price-to-pay\/","title":{"rendered":"A Price to Pay"},"content":{"rendered":"\n
Happy Monday Morning!<\/p>\n\n\n\n
CPI headline inflation came in lower than expected this past week. Markets were calling for 3% and we got 2.8%, a pleasant surprise and back to its lowest levels since March 2021. Perhaps the 475bps of rate hikes are finally starting to work their way through the system?<\/p>\n\n\n\n
We are back within the BoC\u2019s target range of 1-3%. If you strip out mortgage interest costs, which were up 30% year-over-year and are entirely self-inflicted by the Bank of Canada, then headline inflation sits right at 2%.<\/p>\n\n\n\n
And yes, I know about gasoline prices.<\/p>\n\n\n\n
Please don\u2019t misconstrue this as problem solved. We all know inflation has been pervasive over the last couple of years. It has wrecked havoc on the bottom half of society. That price growth is now baked into the cake, and prices are not going down, they\u2019re just going up a lot less than they used to.<\/p>\n\n\n\n
However, if you\u2019re skeptical about government inflation data then i\u2019d encourage you take a look at Truflation.com. Inflation peaked at 11% in the US and is now running at 2.3%. Central banks have already over tightened, they just don\u2019t know it yet.<\/p>\n\n\n\n