Blog – Cost of Living and Inflation – Canada – March 2022 Inflation continues to run hot in Canada, with consumer prices rising 6.7 per cent year-over-year in March. Statistics Canada says that's up from 5.7 per cent in February and the largest gain in the Consumer Price Index (CPI) since 1991. Higher prices were widespread, rising in all eight major components of the index. Source - https://ca.finance.yahoo.com/news/canadian-inflation-highest-since-1991-124402017.html

1. Preliminary– Inflation
Analysis –Canada
Paul Young CPA CGA
April 20, 2022

2. Paul Young - Bio
• CPA, CGA (1996)
• Academia (PF1, FA4, FN2, MU1. and MS2)
• SME – Customer Success Management
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Emerging Technology
• SME – Business Process Change
• SME – Financial Solutions
• SME – Macro/Micro Indicators
• SME – Supply Chain Management
• SME – Data, AI, Security, and Platform
• SME – Internal Controls and Auditing
Contact information email: Paul_Young_CGA@hotmail.com
LinkedIn: https://www.linkedin.com/in/paul-young-055632b/
SlideShare - https://www.slideshare.net/paulyoungcga
Twitter: https://twitter.com/paulyoungcpa
Youtube - https://www.youtube.com/user/youngercga1968/videos

3. Agenda
• Consumer Price Index
• Housing Price Index
• Housing Prices
• Household Debt to Income
• Carbon Taxation
• Cdns above the average wage
• Cable and Satellite Pricing Index
• Lumber Prices
• Natural Gas
• Summary

4. Introduction
• The liberal ran on a platform saying they would make things more
affordable. This presentation discuss key policy changes as part of
people assessing did the Liberals make lives either more affordable
or less affordable

5. OECD and Inflation

6. Child Care Costs
Blog – Childcare and Daycare – Canada – What is next
I believe in program spending if it is effective in terms of results. The $10 childcare model proposed by @JustinTrudeau
is poorly constructed due systemic issues with daycare like oversight, availability of spots, and cash strapped families.
My work - https://www.slideshare.net/paulyoungcga/daycare-and-child-care-funding-canada-october-2021
While the federal government seems to have placed Quebec’s child-care system on a pedestal, hailing it as the “very best
example,” we believe the national child-care plan could — and should — do better. Almost from its inception in 1997, the
Quebec daycare system has had long waiting lists that aren’t getting any shorter. Some 51,000 children are currently
waiting for a space. Things have gotten to the point where families believe it’s normal to spend several years on a waiting
list before getting a slot in a subsidized child-care centre. This is despite the now billions of dollars spent every year
throughout the system.
https://financialpost.com/opinion/opinion-lets-not-kid-ourselves-quebecs-child-care-is-no-model
This daycare plan is flawed! https://www.slideshare.net/paulyoungcga/daycare-and-child-care-
funding-canada-october-2021 . You may want to read the various audit reports on the existing
issues with daycare before making your various tweets.
https://www.cbc.ca/news/politics/childcare-ontario-liberals-
1.6207667?__vfz=medium%3Dsharebar

7. Inflation / Canada
Source – Stats Canada
CPI - Canada
-Inflation.pdf

8. Summary - Inflation

9. Price Change by Main Area

10. Summary - Inflation

11. Housing Price Index
Source - https://tradingeconomics.com/canada/housing-index

12. BMO – Consumer Price Index
Source -
https://economics.bmo.com/en/publications/deta
il/2cb89f8c-5f2c-4cd1-b642-550ea67076e2/
Source – BMO - https://economics.bmo.com/en/publications/detail/f3043170-c659-40f3-
b37f-14ca75272422/
U.S. CPI More To The
Core.pdf
Canadian Inflation
Six-point-Seven Degrees of Separation.pdf

13. Industrial Produce Price Index
Producer Price Index
and Raw Material - February 2022 - Canada.pdf
Canada Producer
Prices Climb 3.1% in February From January - MarketWatch.pdf
Record numbers of
UK manufacturers raise prices as Ukraine war hits costs Manufacturing sector The Guardian.pdf
NAHB calls for
ending lumber tariffs, boosting output at White House Event.pdf
Fertilizer Prices Break
New Records-- in Conjunction with Elevated Commodity Prices, Stir Food Security Concerns • Farm Po
Quebec Ink As war
and autocracy threaten critical mineral supplies, Quebec stands to benefit - The
Let us not replace
one dependence with another – EURACTIV.com.pdf
German LNG
Terminal’s Developers Seek Fast Track to Cut Russian Gas Reliance - BNN Bloomberg.pdf
Soaring Costs For
Farmers Puts Upward Pressure On Inflation.pdf
What's going on with
the nickel market - Marketplace.pdf
Why higher steel
prices don’t help the bottomline.pdf
Summary:
Brief: Canada's February Industrial Product
Price Index Up 3.1% M/M, Gains 16.4% Y/Y;
Raw Materials Price Index Adds 6.0% M/M,
Climbs 29.8% Y/Y
Source - https://www.marketscreener.com/news/latest/Brief-Canada-s-February-Industrial-Product-
Price-Index-Up-3-1-M-M-Gains-16-4-Y-Y-Raw-Materials--39826589/
1. Raw Materials - https://www.marketwatch.com/story/canada-producer-prices-climb-3-1-in-
february-from-january-271647953013
2. Price Increases - https://www.theguardian.com/business/2022/mar/22/uk-manufacturers-
prices-ukraine-war-cbi-rishi-sunak-spring-statement
3. Tariffs 0 https://lbmjournal.com/nahb-calls-for-ending-lumber-tariffs-boosting-output-at-white-
house-event/
4. Fertilizer - https://farmpolicynews.illinois.edu/2022/03/fertilizer-prices-break-new-records-in-
conjunction-with-elevated-commodity-prices-stir-food-security-concerns/
5. Critical metals - https://thelogic.co/news/quebec-ink/quebec-ink-as-war-and-autocracy-
threaten-critical-mineral-supplies-quebec-stands-to-benefit/
6. Critical metals - https://www.euractiv.com/section/circular-economy/opinion/let-us-not-
replace-one-dependence-with-another/
7. LNG - https://www.bnnbloomberg.ca/german-lng-terminal-s-developers-seek-fast-track-to-cut-
russian-gas-reliance-1.1740797
8. Farming costs - https://www.barchart.com/story/news/7677243/soaring-costs-for-farmers-
puts-upward-pressure-on-inflation
9. Stainless - https://www.marketplace.org/2022/03/21/the-nickel-market-has-gone-bonkers/
10. Steel - https://www.livemint.com/market/mark-to-market/raw-material-cost-rise-blunts-steel-
price-hike-11647890714317.html

14. Household Costs / Carbon Pricing CAN environmental ranking has dropped one position under
your watch
No where do you mentioned either the dumping of sewage into
waterways or the impact of cruise ships.
No where do you mentioned that carbon tax hurts family
$1K+/yr (ex-tax credit)
https://www.slideshare.net/paulyoungcga/2019-election-
environment-climate-change-issues-and-concerns-canada-
september-2019
@cathmckenna
You allow sewage into waterways
Cruise ship have emissions issues
Oil is going by rail
Canada already taxed pollution way before your carbon tax
https://www.slideshare.net/paulyoungcga/2019-election-
environment-climate-change-issues-and-concerns-canada-
september-2019

15. Carbon Tax
Source – Fraser Institute

16. Lumber Cost
Source - https://www.canadianmanufacturing.com/operations/new-record-wood-product-prices-boost-shares-and-estimates-for-canadian-producers-259279/ or
https://www.slideshare.net/paulyoungcga/forestry-management-environment-sustainable-practices or https://www.slideshare.net/paulyoungcga/what-is-next-for-the-forestry-sector-243761063

17. Housing Cost

18. Natural Gas
Natural gas prices continue to rise
Natural gas plants are moving to zero-emissions through carbon sequestration processes
Carbon tax prices will continue to impact utility costs for both households and businesses
https://www.slideshare.net/paulyoungcga/what-is-next-for-natural-gas-250240876
https://www.cnbc.com/2021/09/16/why-natural-gas-could-extend-its-pullback-according-to-charts.html
Key Takeaway: These are good times for natural gas producers, which could extend into next year. Thus, the risks to our
annual average forecast for Henry Hub of $3.50 for 2021 and $3.00 for 2022 remain skewed towards the upside.
https://economics.bmo.com/en/publications/detail/65ad0b01-40d1-4f0f-be57-71d7851ff5f0/

19. Electricity Costs
European electricity prices have climbed to their highest levels in over a decade in recent weeks, rising above 100 euros
per megawatt-hour in many markets. In Germany and Spain, for example, prices in September have been around three
or four times the averages seen in 2019 and 2020. This increase has been driven by the surge in gas, coal and carbon
prices in Europe.
Chinese utilities are only permitted to pass along 10% price increases. They have not yet been permitted to pass along
more price increases to consumers. This makes for a less flexible response the shortages and price increases.
https://www.nextbigfuture.com/2021/09/coal-and-gas-prices-have-doubled-which-contribute-to-china-power-
outages.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+blogspot%2Fadvancednano+%
28nextbigfuture%29
My work: https://www.slideshare.net/paulyoungcga/world-electricity-analysis-and-commentary-june-2021

20. Global Energy Prices
• Global energy prices have spike due to issues with
energy supply -
https://www.slideshare.net/paulyoungcga/world-
electricity-analysis-and-commentary-july-2021

21. Bank of Canada / Monetary Policies
• There are issues with GDP: a) Productivity b) FDI
outflow c) Lack of innovation d) Higher
Commodities e) government deficits and taxes
• About 40% of the job vacancies are with jobs that
pay less than the average wage
• Size of household debt continues to be an issue
• Lack of affordable housing options
• Global Trade and protectionism
Source - https://www.slideshare.net/paulyoungcga/bmo-
7-reasons-to-be-exciting-about-the-canadian-economy
My concerns with the BOC saying inflation dropping from 5.3% in 2022 to 2018 is not realistic and here is why:
• Liberals plan hikes to carbon tax - https://nationalpost.com/news/politics/federal-carbon-tax-to-increase-to-170-per-tonne-
by-2030-as-liberals-unveil-new-climate-plan
• Critical metals have risk due to supply and refinement capacity issues. https://oilprice.com/Latest-Energy-News/World-
News/America-Desperately-Needs-To-Scale-Up-Battery-Metal-Production.html
• Huge capital needs to be spent on areas like the electrical grid and plug-in stations (electrical vehicle adoption)
• Housing issues will continue to plague the cost of housing – https://www.slideshare.net/paulyoungcga/housing-and-
homelessness-canada-and-the-world-budget-2022-pptx
• Automation will also play a key role with organizations managing their costs -
https://www.slideshare.net/paulyoungcga/what-is-next-for-automation
My work - https://www.slideshare.net/paulyoungcga/preliminary-cost-of-living-canada-february-2022pptx

22. What’s next
• Removing the carbon tax
• All levels of government need to stop looking for ways to tax people
and start fixing issues with the tax code as well as finding better
ways to deliver government -
https://www.slideshare.net/paulyoungcga/2019-election-fiscally-
responsible-government-canada-september-2019 or
https://www.slideshare.net/paulyoungcga/2019-election-tax-
reforms-and-fairness-canada-september-2019
• Fixing policies that will ensure Canada is more competitive when it
comes to attracting FDI -
https://www.slideshare.net/paulyoungcga/2019-election-canada-
competitivenes-september-2019
• All governments along with the private sector need to fix the
systemic issues with housing -
https://www.slideshare.net/paulyoungcga/2019-election-housing-
affordability-canada-june-2019
• All levels of government along with private sector need to work
together as part of address the skill gap issues -
https://www.slideshare.net/paulyoungcga/2019-election-human-
capital-and-skills-management-canada-september-2019
• Post-Covid19 - https://www.slideshare.net/paulyoungcga/whats-
next-for-canada-post-covid19
• Fixing issues plaguing the goods-producing sector -
https://www.slideshare.net/paulyoungcga/how-to-address-issues-
facing-getting-goods-to-market
• Circular Economy - https://www.slideshare.net/paulyoungcga/how-
to-best-support-a-circular-economy
https://economics.bmo.com/en/publications/detail/58f05780-cf23-4c66-859d-4c0bc63ebe9b/
Ca na dia n Infla tio n
Six-po int-Seven Degr ees o f Sepa r a tio n.pdf
CPI - Ca na da
-Infla tio n.pdf
Blog – Cost of Living and Inflation – Canada – March 2022
Inflation continues to run hot in Canada, with consumer prices rising 6.7 per cent year-over-year
in March.
Statistics Canada says that's up from 5.7 per cent in February and the largest gain in the
Consumer Price Index (CPI) since 1991.
Higher prices were widespread, rising in all eight major components of the index.
Source - https://ca.finance.yahoo.com/news/canadian-inflation-highest-since-1991-124402017.html
Higher r a tes s ta r t to
coo l Ca na da 's ho t ho us ing ma r k
et - BNN Blo o mber g.pdf
Ga s pr ices could
jump s even cents a litr e Wednes da y To r o nto Sun.pdf
Lithium cos ts a lo t o f
mo ney—s o why a r en’t we r ecycling lithium ba tter ies Ar s Technica .pdf
IMF Gr o wth Outlo o k
UK Fa ces Wo r s t Infla tio n Sho ck Amo ng G7 Na tio ns - Blo o mber g.pdf
‘Gr een Infla tio n’ Is
No thing New. But Mo r e Is o n the Wa y - WSJ.pdf
Fina nce hea ds ur ged
to bo o s t fight a ga ins t fo o d ins ecur ity.pdf
Delving into cr itica l
miner a ls Wha t Ca na da ca n lea r n fr o m the Aus tr a lia n exp er ience Ma cdo na ld-La ur ier Ins titute.pdf
Peo ple a r e s till lining
up to buy electr ic vehicles des pite s o a r ing ba tter y cos ts E ur o news .pdf
ANALYSIS-So a r ing
ba tter y cos ts fa il to coo l electr ic vehicle s a les Na s da q.pdf
Co mmo dity pr ices
a r e go ing ha ywir e, pr o mpting fea r s o f the next fina ncia l cr is is - Ma r k
etWa tch.pdf
Ba nk o f Ca na da hik
es
inter es t r a tes , a s s o a r ing infla tio n s queezes wo r k
er s ’ incomes - Wo r ld So cia lis t Web Site.pdf
IMF cuts glo ba l
gr o wth fo r eca s t due to 's eis mic wa ves ' fr o m Rus s ia 's wa r in Uk
r a ine Reuter s .pdf
1. Housing Costs - https://www.bnnbloomberg.ca/higher-rates-hit-canadian-housing-market-with-
sales-down-5-4-1.1753858
2. Gasoline - https://torontosun.com/news/local-news/gas-prices-could-jump-seven-cents-a-litre-
wednesday
3. Lithium - https://arstechnica.com/science/2022/04/lithium-costs-a-lot-of-money-so-why-arent-
we-recycling-lithium-batteries/
4. UK inflation - https://arstechnica.com/science/2022/04/lithium-costs-a-lot-of-money-so-why-
arent-we-recycling-lithium-batteries/

23. Other Sources
• If you like to learn
more about trade
and/or other
subjects as part of
your professional
learning, and
development then
feel free to review
my material on
https://www.udem
y.com/ (search Paul
Young CPA CGA