That Inflation Scare
Posted by Andrew Jackson under inflation.
March 21st, 2007
Comments: none
Financial markets seem to be betting on an interest rate increase in the wake of news that the CPI year over year inflation rate jumped to (the horror, the horror!) 2.0% in February. A look at the numbers shows that any inflation problem beyond temporary gas price issues is pretty well confined to Alberta. Here, the year over year inflation rate in February was 4.9%, driven by a stunning 19.3% increase in owned accommodation costs (ie soaring house prices). Outside Alberta, only Manitoba and BC have inflation rates above the national averag (2.1% and 2.2% respectively) Does it really make sense to to hit the whole economy with an interest rate increase and a higher dollar to squash a housing bubble which is pretty well-c0nfined to one province?
Related articles
- Inflation Collapse Confounds Monetary Hawks (May 17th, 2013)
- Polozogistics: Nine Thoughts About the Choice of the New Bank of Canada Governor (May 3rd, 2013)
- Margaret Thatcher’s Economic Legacy (April 16th, 2013)
- Mark Carney’s tenure and the state of monetary policy (November 27th, 2012)
- Prices Decline Yet Again (August 17th, 2012)
Write a comment