Canada’s inflation rate decelerated to 3.4 per cent in the year up to May, Statistics Canada said Tuesday, led by sharply lower gasoline prices. But beneath the headline slowdown in consumer prices, many facets of the cost of living are still increasing at an eye-watering pace. Grocery prices went up at an almost nine per cent pace.
I’m not going to get excited about any “deceleration”; this is still an increase. And due to “base effects”,1 we’re comparing against high values. Until it’s steeply negative it’s nothing to get excited about.
1 year over year measures compare now versus a year ago. if a year ago was unusually high, you’d expect this comparison to revert to the mean over time as the window shifts forward; it could have more to do with what you’re comparing to (a year ago) than what’s happening today