![gods plan drake fade gods plan drake fade](https://i.ytimg.com/vi/H-OAmdkBWY8/maxresdefault.jpg)
At over 4% inflation is the highest in two decades and, in reality, the sting is far worse than that. The Bank of Canada’s cryptic boss, Tiff Macklem, has downplayed the surge, saying this is all ‘transitory.’ This week the head of RBC disagreed. Official inflation in the States is 5.4% and in Canada’s it’s at 4.2% – far above the Bank of Canada’s target rate of 1-3%.Įconomists here figure our CB will let inflation run hot since ruining the fortunes of retirees is less of a danger than crippling the post-Covid economic recovery. Prices are rising at the fastest clip in 26 years. Power shortages there cut factory production in 20 provinces last month. It’s bordering on being out of control.Īnd look at China. Energy is one of the biggest components of inflation. Electricity costs are going up, since these fuels (and coal) are used to make it. There’s an acute shortage of natural gas as the global recovery sucks off supplies. Gasoline prices have hit all-time highs in much of the country. Oil is over $80 a barrel and on its way to a hundred bucks, many believe. The implications for your finances, portfolio and retirement are growing more profound. So food will cost more, along with gasoline, natgas and everything made from oil.
![gods plan drake fade gods plan drake fade](https://i.ytimg.com/vi/_SzBXcE8gVc/maxresdefault.jpg)
Lumber and golden retrievers may cost less than last year, but energy is surging. No phones.ĭemand is shifting back into services and prices are exploding there, too. Apple just announced iPhone production will drop by ten million units. The car guys can’t get enough to make vehicles. Factories that had to close for a while because of Covid can’t keep up with demand. The amount we shoveled into restaurants, airlines, child care, haircuts and clothing stores plunged. The last 18 months brought serious nesting, home renos, new hot tubs, boxes of stuff from Amazon and Wayfair, furniture buys, electronics and (especially) laptops, computerized kitchen appliances and puppies. But when a virus hits and lockdowns happen, everything can change. In a normal world (remember that?) 70% of the economy is derived from spending on services.