Prices for nearly everything are rising. Whether we fill up our vehicles or pick up our weekly groceries, we are seeing the impacts of inflation almost everywhere we go.
According to the latest update from Statistics Canada, the Consumer Price Index—the tool that tracks changes in prices—is up 6.8%. And as of March 2020, research from Nanos show that nearly 1 in 4 Albertans are struggling to afford basic household necessities, and we may very well be at an inflation tipping point.
The drivers of price increases and decreases—inflation and deflation, respectively—are often related to complex systems of supply and demand. For instance, when there is a lot of demand for a good while limited supply, the price of that good increases. And right now, we are experiencing supply constraints in key global markets such as energy and food, largely driven by the ongoing war in Ukraine.
Bu inflation is even more complex than that.
To help cut through the complexity and explain why we are seeing inflation hit a 30-year high, we invited BCA’s own Chief Economist Mike Holden and Manager of Policy & Economics, Alicia Planincic to the show.
We discuss the current inflation rate, how rising prices are impacting Albertans, whether wage growth is keeping pace, worries around potential stagflation, and what policy tools we have to relieve the pressure of high prices.
In this episode:
- Drivers of inflation in Canada
- Why this case of inflation is different than usual
- How inflation is impacting Albertans
- Probability of stagflation (high unemployment + high inflation)
- Policy solutions to fight inflation
- How wage growth has kept pace with inflation
About The Brief
In this series, co-hosts Scott Crockatt and Brittany Brander explore the big challenges we face as Albertans; celebrate stories of growth, innovation, and prosperity; and discover bold ideas to make life better for Albertans.