Why do you say inflation is more than 2%?
I do not dispute their finding of 2% “core” rate, or their “headline” rate, or their “running total” rate, etc. etc. These rates reflect a certain basket that is being measured by government for its reason. I am only interested in the basket of goods and services that changes our living costs, without a corresponding increase in income. Our current rising costs on everyday living are nowhere near 2%!
Fresh vegetables as of June, are up 17% over last year. Pork is up 6%. In fact, all 8 food groups that the government chooses to report on are also up more than 5%. The government also chooses not to include gas (up 100% in ten years), rents (in Vancouver up 100% in 10 years), house prices (in Vancouver up 100% in 10 years) etc., etc., etc. Add to that simple ‘new cost of living creation’. Take parking in parks, all entrance fees to government services. The list is endless and brings everything that we need to live on higher and higher, but wages are not. Why do Governments like the core inflation rate? Because that’s what they use as an increase on your pension – whereas the reality of where we live and what we do is getting more and more expensive. In the US entitlements are also tied to the official rate.