October 18, 2009

Deceiving: "Inflation Rate Stays Negative"

Because of the many figures and calculations that go into the CPI, it's impossible to extract anything useful from it.  From the CBC article, lower prices for gasoline this past year was the downward force, but important key items were pushing higher:
Food prices continued to be the main driver of inflation with a 2.8 per cent annual gain last month, although that is less than the four per cent increase registered in August. The biggest increases came in the price for fish, which rose 8.8 per cent, and for sugar and confectionery, up 8.7 per cent. - full story
So while overall prices are decreasing, fish and other food prices are rising swiftly and consistently.  I suspect this trend will continue, as demand for these items increase in developed and developing countries and as food production and energy costs rise. 

Local food production is one way to add resilience in our food supply.  Food from local farmers, community gardens or your own backyard tastes better, contains no chemicals and has a lighter carbon footprint than trucked-in high-cost food. 

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