Rupa Subramanya: Liberals blame inflation, leaving Canadians with fewer dollars

Key Takeaways:

• While rising inflation eats away at Canadians’ wallets, the federal government appears to be denying any responsibility.

Chrystia Freeland, the Deputy Prime Minister or Finance Minister, was recently questioned about rising inflation in Canada. She is a former business journalist who used to grill politicians about it.

“The inflationary environment we are observing in Canada today is very much being experienced around the world,” she said. Those are not made-in-Canada factors, so looking for a made-in-Canada solution when those are the drivers are logically looking for the wrong tools.”

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In Canada, consumer price inflation is still on the rise. Following a year-over-year increase of 4.4 percent in September, the Consumer Price Index the baseline indicator of the cost of living for the average Canadian increased to 4.7 percent in October. Meanwhile, in the European Union, on November 30, consumer price inflation in the Eurozone was reported to be 4.9 percent, the highest level since the creation of the common currency.

On the diffrent side of the Atlantic, they are less optimistic about rising inflation than Freeland. The European Central Bank has admitted that high inflation may last longer than expected. Jens Weidmann, the outgoing president of the Bundesbank, Germany’s central bank, and the most critical national central banks that comprise the European Central Bank, has urged the ECB to be “wary of any obligation to maintain its very loose course for an extended period.”

Christian Lindner, the incoming finance minister of Germany’s new coalition government, tweeted that growing inflation causes “legitimate concerns.” Lindner is a segment of the Free Democratic Party, a coalition partner in the new alliance led by the Social Democratic Party and including the Greens.

Meanwhile, President Joe Biden recently acknowledged in a speech that rising inflation is a concern for American households. “Moms and dads are worried, wondering, ‘Will there be enough food we can afford to buy for the holidays?'” he said. Will we be able to deliver Christmas gifts to the children on time? And, if so, will they set me back an arm and a leg?’

Source: Nationalpost News