Date: Apr 17, 2019 (article written by Pete Evans)
Link: https://www.cbc.ca/news/business/inflation-rate-march-1.5101360
Summary: The cost of living rose at an annual rate of almost two per cent in March, Statistics Canada says, as increases in the price of food, rent and mortgages were slightly offset by cheaper gasoline. The data agency said Wednesday that Canada’s consumer price index rose from 1.5 per cent in February to 1.9 per cent in March. The 1.9 per cent figure was in line with what economists were expecting. Food was a big reason for the jump in inflation, as the price of fresh vegetables has risen by 15.7 per cent in the past year, while fresh fruit prices are up by almost as much — 8.6 per cent. Overall, food price inflation accelerated to 3.6 per cent in March from 3.2 per cent the previous month. Sylvain Charlebois, a professor of food distribution and policy at Dalhousie University in Halifax, said food prices are always more volatile than some other categories, but recent jumps are “excessive” even by their own high standards. Part of the reason why the country is so vulnerable to food inflation is because most of what Canadians eat comes from outside the country.
Stakeholders & how different people/organizations can be effected
Government- (-) The Government will not be able to collect more tax because of the inflation as more and more people are buying less. As a result, Canada will need to import more to decrease the rates and meet the demand of resources.
Lower and Middle class People- (-) Because of the inflation, people are paying more. Also, lower class people are not able to fulfill their needs.
Retailers- (-) Because people are buying less, retailers are not able to sell their products and as a result, they are facing loss.
Other countries- (+) To decrease the inflation rates, the government has to import more vegetables from other countries which will increase the export revenues of other countries.
Economy- (-) GDP rates will decrease because of the inflation which will effect Canada’s economic growth.
Unemployment- (-) Because of the inflation people are buying less and as a result nobody will hire new people. So, unemployment rates will go up.
Farmers- (+) Farmers who grow vegetables are getting benefitted because the prices are high and they are making more profits.
Personal opinion: I believe this will effect GDP rates of Canada for sure. Also, Canada should grow more fruits and vegetables so that they don’t have to import more from other countries. I think this will not effect me because I am not paying for the groceries right now. But in future it will effect me if it will continue to start rising.
Question: If you have to solve this problem, what can you do to decrease the inflation rates?
Economics 12 