Inflation and Cost of Living for Canada - November 2023



Source - https://economics.bmo.com/en/publications/detail/a8580faf-7835-448c-8844-e5be7dce53a1/

Douglas Porter and the rest of 满地可银行 do amazing job on their economic analysis including inflation.






Source - Stats Canada



Source - Trading Economics

Inflation as discuss by BMO earlier has stuck at 3.1%, or about 1.0% above the target rate of 2.1%. The target rate of inflation will be a challenge due to many factors including geopolitical risks with the supply chain, the rise of the carbon tax, low productivity, skills gap, lack of innovation, high government deficit spending, and the cost of the green transition (capital and operational spending)

What can be done to address the high inflation cost?

  1. Farmers continue to struggle with high input costs along with adopting technology is put pressure on farmers cash and margins - https://www.fwi.co.uk/business/2023-extreme-weather-and-high-input-costs-take-toll-on-farming or regenerative farming continues to be focus by AGCO Corporation or McCain Foods or AGRIVI or Smart Apply?, Inc. or 通用磨坊 or 嘉吉 or others
  2. Partisan politics continues to be focus on food prices by Jagmeet Singh Alistair MacGregor Fran?ois-Philippe Champagne and others - https://www.bnnbloomberg.ca/inflation-grocery-prices-up-4-7-in-november-1.2013554 or https://financialpost.com/news/retail-marketing/empire-profit-falls-despite-grocery-gains Sobeys
  3. Productivity is big concern for Canada - https://macdonaldlaurier.ca/unpacking-canadas-productivity-challenge-aaron-wudrick-and-callum-macleod-for-inside-policy/ Great work by Aaron Wudrick
  4. Canada needs a complete review of their innovation programs and policies - https://itif.org/publications/2023/12/18/canadas-innovation-gap-a-warning-sign-for-economic-prosperity-and-national-security/ Irek Kusmierczyk, MP touts one off investments as being success when they are not when it comes to addressing the overall innovation gap. I have stated numerous times over the years that there needs to be a pivot on innovation including how all colleges and universities should be incubation centres. Ryan Turnbull has ignored the reports on the failures of incubation centres in terms of job creation and new business investment - https://itif.org/publications/2023/12/18/canadas-innovation-gap-a-warning-sign-for-economic-prosperity-and-national-security/
  5. Addressing the skills gap is still a challenge for Canada. https://www.investmentmonitor.ai/sponsored/plugging-the-skills-gap-canada-is-innovating-in-cyber-education/
  6. Canada needs to get its fiscal house in order. Canada is a projected $35B budget deficit with no path to balance. https://www.fraserinstitute.org/article/spending-sprees-by-governments-across-canada-help-fuel-inflation-and-high-interest-rates Pierre Poilievre
  7. Housing still remains out of reach for many Canadians - https://financialpost.com/news/housing-market-canada-five-things-2024 or https://www.kawartha411.ca/2023/12/18/housing-affordability-now-a-top-priority-for-over-half-of-ontarians/. The problem is liberals like Sean Fraser and his colleagues like Irek Kusmierczyk, MP or Ryan Turnbull or Karina Gould think throwing money at the symptoms will address all aspects of housing. Collaboration between all levels of government and the private sector to streamline the building permit process, changes to building code (3D Printing, Green Materials, Modular, Grid, and Infrastructure, biodiversity, etc.) https://www.dhirubhai.net/pulse/four-challenges-modular-construction-paul-young-smw0e/
  8. The green transition needs to be tied to viable technology, or there is risks that inflation will remain high and the technology not being effective in terms of climate change objectives. https://ca.news.yahoo.com/cost-inaction-far-exceeds-cost-103647009.html . I have often discuss the need for all levels of government to pivot on their green transition. Automotive is good example of policies that are not effective with transition to greener fuels. https://www.dhirubhai.net/posts/paul-young-055632b_ev-inventories-hit-record-high-in-us-as-cars-activity-7142137988532084736-6V8u?utm_source=share&utm_medium=member_desktop Steven Guilbeault has since he took the environment file dictated policies without viable technology to help with the green transition. Guilbeault approach has create division within Canada with Premiers like Scott Moe or Danielle Smith https://www.dhirubhai.net/pulse/oil-gas-sector-analysis-november-2023-paul-young-kenwc/
  9. Near-shoring of the supply chain can go along way to address emissions as well as provide better control over the supply chain. The key is to have the right policies that encourage re-shoring of jobs and investment. Ryan Turnbull loves to tout a few large EV battery as a success when in fact Canada is trailing both the USA and Mexico on re-shoring jobs from China and other areas - https://www.reuters.com/world/americas/mexican-businesses-warmed-by-glow-nearshoring-dawn-2023-11-06/
  10. Addressing the green transition to the power grid needs to be tied to viable technology as well as better integration to ensure efficiency generation and transmission of power. Blog –? ESG – Facilities Management – JLL and Micro Grids - https://www.dhirubhai.net/posts/paul-young-055632b_microgrids-can-drive-resiliency-efficiency-activity-7142589448990470146-NVrM?utm_source=share&utm_medium=member_desktopBlog – Power Generation Analysis and Commentary – November 2023 – Grid – Electricity – Utility Sector - https://www.dhirubhai.net/pulse/utility-power-generation-sector-november-2023-paul-young-kcuxc/



Blog – Transportation Sector Analysis and Commentary – November 2023 - https://www.dhirubhai.net/pulse/transportation-sector-analysis-commentary-november-2023-paul-young-vzqvc/

Paul Young CPA CGA

Senior Data and AI Thought Leader - Financial Planning, Analysis, and Reporting

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Paul Young is a former IBM Customer Success Manager that has deployed over 300 data and AI solutions across geographies and industries for the past 8 years. Paul is also Financial Planning, Analysis and Reporting SME on how best to work with data as part of driving better business outcomes.

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