As recently as Oct 2008 the worry was for inflation and now the call is for deflation.
We got these stats from the Bank of Canada inflation calculator site.
$100 in 2003 = $111.38 in 2008 | 2.2% inflation
$100 in 2007 = $102.60 in 2008 | 2.6% inflationStatistics Canada – Consumer Price Index Nov 2008
Inflation was approaching 4% on an annualized monthly basis solely because of energy prices. Deflation is defined as dropping prices, but is it just because of dropping energy prices, and is that a bad thing? Should we bail out the oil companies now?
Thoughts from any armchair economists welcome.
1 response so far ↓
j // December 2, 2008 at 5:48 pm
Inflation isn’t just what the Bank of Canada says it is. First article to mind is in the Globe, but it’s not a new idea:
http://www.theglobeandmail.com/servlet/story/LAC.20071201.STBUYSIDE01/TPStory/TPBusiness/?query=