Is Inflation Alive and Well in Canada?

The Bank of Canada is sticking with its record low interest rate of 0.25% and is expected to remain with the loose, "stimulative" monetary policy through to next year. Apparently without it the goal of "sustained global growth" wont be achieved and we'll slip into a deflationary spiral.

Rob Carrick, personal finance columnist at the Globe and Mail, takes issue with the Statscan / Bank of Canada's view that prices are still falling. He suggests, that from his subjective stance, it's inflation that we're seeing not deflation.

He echoes what I'm seeing, although here rising prices might also be in anticipation of next year's Olympics.

Carrick's surmise is subjective - his bills are up, goods and services such as transit and train tickets are up, insurance bills are up, property tax is up. The only thing down on last year is gas (oil was in its speculative "bubble" at $147 a barrel).

"It all comes down to energy, then. If you drive a lot, your personal inflation rate may be down. If you don't, then you may be paying more for goods and services at a time when the term deflation is being tossed around."