Inflation is now almost entirely the result of factors within Canada, economist Mark Carney yesterday told the Senate banking committee..The former Bank of Canada governor, now a Liberal fundraiser, said the rising cost of living is “principally a domestic story.”.“There have been global factors for inflation whether it's commodity prices and the supply chain problems,” said Carney. “But, really, now inflation is principally a domestic story.”.“We have seen the contributions to inflation broaden across categories of the Consumer Price Index,” said Carney, adding: “Most of it now is domestically generated inflation. We see it in the service sector.”.According to Blacklock's Reporter, Carney was appointed chair of Canada 2020, a Liberal Party affiliated research group based in Ottawa, last May 26. The executive chair of Canada 2020 is a former Liberal Party president. The executive director is a former campaign organizer for Prime Minister Justin Trudeau..Carney in a May 31 fundraising letter to Canada 2020 supporters appealed for cash donations. “Please chip in,” he wrote..Carney’s testimony yesterday at the banking committee contradicted repeated Liberal claims that foreigners were to blame for the cost of living. “We know Canadians are struggling with this global inflation,” the prime minister told the Commons Wednesday..“Canadians are experiencing the effects of global inflation,” Liberal MP Mark Gerretsen (Kingston and the Islands, ON) said Tuesday. “Inflation is a global challenge,” Health Minister Jean-Yves Duclos said Monday..Bank of Canada Governor Tiff Macklem on October 6 said inflation could not be blamed on foreigners..“Some of this inflation reflects global developments that we don’t control, but inflation in Canada increasingly reflects what’s happening in Canada,” Macklem said in a speech to the Halifax Chamber of Commerce..“The demand for goods and services here at home is running ahead of the economy’s ability to supply them.”.“Increasingly the inflation we’re seeing in Canada reflects what’s going on in Canada,” Macklem later told reporters. “Look, inflation’s too high and frankly Canadians should be asking us some tough questions.”.“Inflation is 7%,” said Macklem. “Yes, it’s come down a bit from 8%, but at seven, that’s still too high.”.The central bank next Wednesday will raise its prime rate, currently at 3.25%. It is the sixth rate increase this year.
