12 Bank of Canada Governor admits the carbon tax is adding to inflation. (twitter.com) PP posted 2 years ago by Ham_Sandwich77 2 years ago by Ham_Sandwich77 +13 / -1 4 comments share 4 comments share save hide report block hide replies
Some more on this for the nerds out there:
Jan 2021 CPI was 138.2.
Jan 2022 CPI was 145.3.
(145.3 / 138.2) - 1 = .051 << that's than annual inflation number.
Governor is saying that is if we removed the carbon tax from everything in Jan 2022 (like magically disappeared), then the CPI would be 144.7.
(144.7 / 138.2) - 1 = .047 << that's the counter factual inflation number if removed in Jan 2022.
But like, removing the carbon tax would be a one-time reduction in prices. It wouldn’t really affect the next month’s inflation rate.