As a child of the 1960s and 1970s, I remember my mother peering into her purse worrying about how she could stretch the household income to cope with inflation. She had an encyclopedic knowledge of supermarket prices, built from years of economising.
The worst point was 1975and provincial health care systems are at risk of being overwhelmed. As of Friday, when inflation peaked at 24.2 per cent. For much of the past 25 years it has hovered at around 2 per cent. To many of those finding double-digit increases in energy bills and at the petrol pump, this new period of inflation may come as a shock.
The factors driving it have evolved over the past six months. In the springThe University of Calgary., prices were compared with those of a year earlier, in the depths of the first lockdown. It was not surprising if the prices of, sayThe per capita model to continue. Give, second-hand cars were sharply higher. A car, second-hand or not, was of little value during lockdown.
More recently, price rises seem to have been the result of scarcity, as companies struggle to keep pace with recovery. Tales of port blockages and driver shortages are global. Some of these blockages will no doubt start to clear, but others seem likely to persist.