Canada’s inflation rate decelerated to 3.4 per cent in the year up to May, Statistics Canada said Tuesday, led by sharply lower gasoline prices. But beneath the headline slowdown in consumer prices, many facets of the cost of living are still increasing at an eye-watering pace. Grocery prices went up at an almost nine per cent pace.
Changing the formula isn’t a problem, it changes all the time (and SHOULD change all the time). In my opinion the problem is the choice of headline from CBC. Even the article acknowledges the headline inflation rate is being influenced downwards by volatile items, and that economists as well as the BoC don’t really care what the headline rate is. All eyes are still on the underlying “warm” parts of more consistent categories.
I agree that the basket of goods should change, but it’s also weird that they’ve been changing it every year that they’ve been worried about runaway inflation.
It normally changes every few years. Not every year for the last 3.
Basket of goods changes when the goods people are buying changes.
Basket of goods might have included lobster when lobster was a cheap source of protein, but it sure as hell isn’t going to include lobster today.