I don’t know about you but every time I go to the grocery store, the prices seem to be getting higher. I do a double take and scratch my head trying to remember what the price was last time I was there because they have all definitely gone up.
Well according to a recent news release by Statistics Canada, inflation has climbed up to 3.6% in May. According to the news release:
Statistics Canada said the 3.6-per-cent increase in the consumer price index in May was the largest yearly increase since May 2011 and outpaced the 3.4 per cent reading in April, which at the time was the fastest annual rate in nearly a decade.
Canada is not the only country getting squeezed, the US inflation rate also went went up in May to 5%.
The U.S. economy’s rebound from the pandemic is driving the biggest surge in inflation in nearly 13 years, with consumer prices rising in May by 5% from a year ago.
While this can be a boring subject to most, it should be concerning because you can no longer buy the same item that only cost a dollar last year. It doesn’t sound like a really a big deal until you have to buy a big ticket item like a fridge or a car because they may have broken down or if you have to do an unexpected major home repair.
Continuing with the article, Statistics Canada went on to say:
Part of the rise in inflation is due to comparing prices to the low levels seen last year at the start of the pandemic for such items as gasoline, furniture and beef products.
However, Statistics Canada said the increase in year-over-year price growth in May wasn’t solely because of this comparison. It noted more recent price pressures are also driving inflation, with rising housing costs among the leading reasons.
Adding to that are supply-chain issues that have made it more expensive to build new homes or cars, with costs being passed along to consumers.
I think the main thing to point out here is the supply-chain.
As we all experienced early on in the pandemic last year, people began hoarding crazy items like toilette paper and hand sanitizer but I remember empty shelves of other items as well. This event could just simply be chalked up to the panic that the media was drumming up to freak people out and sell the pandemic.
However, as the governments started forcing large companies down to a skeleton staff due to these mystery “cases” of COVID19, there was a significant impact to the food industry supply-chain. We are now seeing the results of these price increases because these companies are trying to make up their losses by raising their prices and passing it on to us.
In a CNN article dated June 3, 2021 entitled Global inflation hasn’t been this high since 2008 they had this to say about what could happen to inflation:
The coming months could prove crucial. One concern is that inflation expectations, by businesses and consumers alike, are rising sharply in the United States. After decades of muted inflation, people no longer expect prices to remain in check.
Such behavioral changes can morph into a vicious cycle, with businesses stockpiling more goods and consumers buying products before they need them. That would only reinforce inflationary pressures.
The hoarding mindset we saw last year could kick in again and is likely already kicking in because of the damage to the economies of the world caused by the COVID19 hoax. Like the article says, people will likely start stockpiling as much as they can, especially food, as prices continue to go up.
So are we out of the woods because everyone is being vaccinated and things will return to normal but never back to the normal we once knew because this is the “New Post Pandemic” reality? I wouldn’t count on it.
The pessimist in me only sees this becoming more and more of a free fall and a world wide economic collapse is where we are headed (likely by design). I also don’t trust anything these central bankers or so called economic experts say.
If you think about it, if anything even remotely close to what we have experienced were to happen again in the next year, we’re done.
All I can say is start stocking up on essential items and get yourself ready for what may be coming in the Fall. We have no idea at this point how this “live vaccine experiment” is all going to pan out and there are other things in the pipe that could be headed our way… more on that in an upcoming post.