Canada’s inflation will likely remain elevated for the foreseeable future, according to Statistics Canada..“Thirty years I’ve worked at Statistics Canada, and I can tell you we haven’t been through an economic period like this,” Greg Peterson, Statistics Canada’s assistant chief statistician, testified at the House of Commons finance committee..According to Blacklock’s Reporter, when.Bloc Québécois MP Gabriel Ste-Marie (Joliette, Que.). asked what the best early indicators would be to watch to anticipate future inflation, Peterson said, “we are not in the business of inflation forecasts, but we do have a number of products which help us measure supply chain costs.”.Peterson said they expect higher gas prices to have a significant effect on March’s Consumer Price Index, unless the situation changes quickly. “The crisis in Eastern Europe could also affect prices for appliances and electronics as key raw materials get more expensive and supply chain pressures increase,” he said..“Ukraine I think is the world’s largest producer of neon for instance,” said Peterson. “That is an important input into the production of computer chips. There are supply chain effects.”.Peterson added since Ukraine is a major exporter of grain and vegetable oil, lower supplies of these products, combined with international market and shipping disruptions, will “likely raise the prices for many everyday foods.”.StatsCan’s benchmark Consumer Price Index is currently sitting at 5.7%, while the U.S. inflation rate is 6.4%. The two indices have different methods of tracking some price hikes like used cars..“We will soon publish our plan to introduce used vehicle prices into the Consumer Price Index,” Peterson.said. “We will be inviting user feedback.”.Conservative MP Adam Chambers (Simcoe North, Ont.) questioned whether the adoption of U.S. calculations on used car prices will push the inflation rate to about 8% in Canada..“We’ll have a working paper out shortly,” replied Peterson.“In April we will explain what we’re going to do. Our plan is to introduce changes with the basket update this summer.”.The Liberal government has repeatedly pointed to higher U.S. inflation rates as proof of Canadian affordability without detailing differences in cost calculations..“It is appropriate to take a look at what is happening in the United States,” said.Liberal MP Kevin Lamoureux (Winnipeg North), parliamentary secretary to the Government House Leader. “Canada’s inflation rate is less.”.Matthew Horwood is the Parliamentary Bureau Chief of the Western Standard
