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Inflation rises to 3.3 per cent

Rising fuel costs to blame: StatsCan


 

Canada’s annual inflation rate jumped to 3.3 per cent in March, pushing inflation to its highest level since the recession began in September 2008, according to a new StatsCan report. Food and fuel prices are the main contributors to this steep increase. In March, gas prices rose by 18.9 per cent, fuel oil and other fuels went up by 31.3 per cent, while electricity prices increased by 4.3 per cent. Food costs rose by 3.3 per cent, marking the largest year-over-year increase since August 2009. Vegetable prices skyrocketed by 18.6 per cent, while meat rose by 5 per cent. Higher energy costs are a blessing and a curse for Canadians, said TD Bank Financial Group economist Craig Alexander, who said that while gas prices are impacting Canadians’ wallets, “higher oil prices are good for Canada,” because it is a net oil-exporting country. The Bank of Canada says that while fuel costs would boost inflation to 3 per cent by June, energy prices will be stabilizing in 2012, making the increase temporary.

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Inflation rises to 3.3 per cent

  1. "The Bank of Canada says that while fuel costs would boost inflation to 3 per cent by June, energy prices will be stabilizing in 2012, making the increase temporary."

    The Bank of Canada then shook their magic 8-ball and determined that Vancouver would win the Stanley Cup.

  2. "The Bank of Canada says that while fuel costs would boost inflation to 3 per cent by June, energy prices will be stabilizing in 2012, making the increase temporary."

    The Bank of Canada then shook their magic 8-ball and determined that Vancouver would win the Stanley Cup.

  3. Here we are again never able to determine what comes first. Logically the price of energy as impacts on pricing right accross the board as distribution becomes more costly. The real crime here is that the current energy crisis if a figment of some futures speculative group and isn't even a real circumstance. Todays market price isn't even based on what price is currently being demanded today, its based on a profiteering plan based on indications what the price of fuels may be in June or July. Canada has more oil than Saudi Arabia and with the recent discovery of the Bakken Field in Eastern Alberta, Southern Sask., and Western Manitoba which has 1 billion barrels of light sweet crude waiting to be tapped and a similar quantity in the US portion of the Field this whole scenario is nothing but a cash grab. The Canaian Government isn't going to complain as they are collecting billions in royalties and taxes when they are in a deficet situation. Looks as though we are hung out to flap in the wind and have our hard earned cash legally thefted once again.

  4. Here we are again never able to determine what comes first. Logically the price of energy as impacts on pricing right accross the board as distribution becomes more costly. The real crime here is that the current energy crisis if a figment of some futures speculative group and isn't even a real circumstance. Todays market price isn't even based on what price is currently being demanded today, its based on a profiteering plan based on indications what the price of fuels may be in June or July. Canada has more oil than Saudi Arabia and with the recent discovery of the Bakken Field in Eastern Alberta, Southern Sask., and Western Manitoba which has 1 billion barrels of light sweet crude waiting to be tapped and a similar quantity in the US portion of the Field this whole scenario is nothing but a cash grab. The Canaian Government isn't going to complain as they are collecting billions in royalties and taxes when they are in a deficet situation. Looks as though we are hung out to flap in the wind and have our hard earned cash legally thefted once again.

  5. If Carney raises rates in the midst of an election, the impact could be significant (especially with an overheated housing market that is, in part, driven by unsustainably low interest rates).

  6. If Carney raises rates in the midst of an election, the impact could be significant (especially with an overheated housing market that is, in part, driven by unsustainably low interest rates).

    • If Carney had raised rates a week before the election, it might have had an impact. With two weeks to go, the effects won't be felt (and reported on) until a month after at the earliest.

      • Well unless Carney comes clean and issues a press release along the lines of:

        TODAY I AM RAISING INTEREST RATES TO PUNISH THE IRRESPONSIBLE OPPOSITION FOR FORCING THE 40TH!!! ELECTION IN 140 YEARS, WHILE UNCERTAINTY AND PIRATES SURROUND THE SHORES OF THIS COUNTRY WHICH USED TO BE AND ALWAYS WILL BE CANADA

        Note: Dimitri, I can start work Monday.

  7. If Carney had raised rates a week before the election, it might have had an impact. With two weeks to go, the effects won't be felt (and reported on) until a month after at the earliest.

  8. Here's a comprehensive summary of the Bakken formation:
    http://www.theoildrum.com/node/3868

    Here are their conclusions:

    1. The Bakken shale has produced about 111 million barrels of oil during the last 50+ years in Montana and North Dakota.

    2. Total Bakken production is still rising, and producing at the rate of 75,000 BOPD in October 2007.

    3. Because of the highly variable nature of shale reservoirs, the characteristics of the historical Bakken production, and the fact that per-well rates seem to have peaked, it seems unlikely that total Bakken production will exceed 2x to 3x current rate of 75,000 BOPD.

    4. The latest boom in Bakken production is driven by the application of horizontal wells and hydraulic fracturing technology, which has added about 70 million barrels of production in 7 years. Ultimate recovery of the already-drilled wells should be at least double this volume.

    5. The USGS estimates the mean volume of technically recoverable hydrocarbons to be 3,649 million barrels of oil. This is roughly 7 to 12 times the size of already known resources.

    6. Based on current production and areas likely to be drilled, the USGS estimate of technically recovery resources seems optimistic.

    7. The Bakken potential resource, while large by US onshore field standards, will have only a minor effect on US production or imports. Using 2006 US imports and consumption for comparison, the Bakken undiscovered resource of 3,649 million barrels of oil, if subsequently discovered and fully developed, would provide us with the equivalent of six months of oil consumption or 10 months of imports, spread over 20 or more years. In reality, the reserves developed are likely to be many times smaller than this value.

    8. The October 2007 production rate of 75,000 BOPD amounts only 0.4% of US oil consumption, or 0.6% of imports.

    9. Per-well Bakken production peaked in August 2005 at 116 barrels a day, and was down to 79 barrels a day in October 2007. If the Bakken production history in the 1990s can be used as a guide, the peaking of per-well production may portend a peak in total Bakken production.

  9. I'm glad I don't drive

  10. I'm glad I don't drive

  11. Is Harper gonna wear this? Stable hand on the rudder and all that ….

  12. Is Harper gonna wear this? Stable hand on the rudder and all that ….

  13. Attributing to inflation to “raising prices” is circular logic; the devaluation of money is conversely proportional to the amount in supply.

  14. Attributing to inflation to “raising prices” is circular logic; the devaluation of money is conversely proportional to the amount in supply.

  15. Time to Kick these Thieving Multinational Companies Out.

    NATIONALIZE THE OIL.

  16. Time to Kick these Thieving Multinational Companies Out.

    NATIONALIZE THE OIL.

  17. I have a web site where I give investment advise on penny stocks and stocks under five dollars. I always get a bang out of the federal governments idea of leaving food and energy out of the consumer price index. they call this the core rate. the core rate is the inflation rate excluding food and energy. I guess everybody never uses fuel for their car their house and nobody ever eats anything anymore.

  18. I have a web site where I give investment advise on penny stocks and stocks under five dollars. I always get a bang out of the federal governments idea of leaving food and energy out of the consumer price index. they call this the core rate. the core rate is the inflation rate excluding food and energy. I guess everybody never uses fuel for their car their house and nobody ever eats anything anymore.

  19. Well unless Carney comes clean and issues a press release along the lines of:

    TODAY I AM RAISING INTEREST RATES TO PUNISH THE IRRESPONSIBLE OPPOSITION FOR FORCING THE 40TH!!! ELECTION IN 140 YEARS, WHILE UNCERTAINTY AND PIRATES SURROUND THE SHORES OF THIS COUNTRY WHICH USED TO BE AND ALWAYS WILL BE CANADA

    Note: Dimitri, I can start work Monday.

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