Why Rate Cuts Won't Help Canada's Inflation
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The Hidden Truth about Canada's Inflation
Timestamps:
00:00 Introduction
01:35 How is Inflation Calculated?
02:33 Decompose the Inflation Data
03:43 How is Shelter Inflation Calculated?
06:07 Rate Cut vs Home Price Inflation
08:41 Conclusions from TD Bank Paper - The BoC’s Shelter Inflation Problem
In this informative video, we delve into the surprising inflation data for January 2024 in Canada, where the inflation rate dropped to 2.9% from 3.4% in December, defying economists' expectations.
Join us as we break down the components of inflation over the past four years, focusing on categories like shelter, food, and transportation. Despite decreases in some categories due to falling gas prices, shelter inflation remains persistently high, posing challenges for overall inflation reduction.
We explore potential scenarios of rate cuts by the Bank of Canada and their implications for housing prices, highlighting the structural issues in the housing market that may persist despite monetary policy adjustments.
Additionally, we discuss insights from a TD Bank paper, emphasizing the need for a shift in focus away from shelter-influenced inflation metrics to prevent adverse economic effects. Don't miss out on this insightful analysis packed with data, graphs, and expert knowledge!
TD Bank Paper: The BoC’s Shelter Inflation Problem
economics.td.com/ca-boc-shelt...
Real Estate Market Comparison: Calgary vs. Vancouver vs. Toronto
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Пікірлер: 29
Now a days all realtors are macro economist
Great show 🎉❤
Most informed realtor in the game...well done!
Very informative, only that I didn’t understand, home prices have doubled maybe tripled since last 20 years, why did shelter inflation not affect interest rates? Interest rates remained low up until the stupid Russian war started early 2022…. But you mentioned Highlight #3, then government should Not include this factor…
Prime land is in very short supply in Canada. Who wants to live where one gets winter 8 to 9 months of the year. Not many are coming from a warm third-world country. Good land for farm is in the same competition for this land. Yes, Canada mass is massive. very little is livable for year-round comfortably.
The government is recklessly spending and running deficits. This will continue to fuel inflation despite the boc increasing or decreasing rates
There may not even be two rate cuts this year. Wallstreet will soon price in only .50 cut
Great video!
Simply put, we areall screwed.
I will be forever grateful to you, you changed my whole life and I will continue to preach on your behalf for the whole world to hear you saved me from huge financial debt with just a small investment, thank you Elizabeth Amdall.
This is what happens when the economy of the entire country is comprised of a couple industries
that is bullshit inflation 2.9% lol 😅😅 in the past year, the inflation increased a good 3% per month, most of the things I bought went up 20 to 30%, while my income was not, and paying more taxes people don't forget Skimpflation and Shrinkflation while our money (our currency) are devaluated
yeeyy inflation is still going up by 2.9% instead of 3.3%😂😂🤣🤣
5% is the low end of normal. All that money laundering dough is gonna vapourize.... so is the dollar and pensions
the truth is...interest rates have nothing to do with house prices.
@stephenn88
4 ай бұрын
Maybe you should go get some education so you don’t embarrass yourself
@begood8989
4 ай бұрын
What are you smoking?
@truthteller6743
4 ай бұрын
They tamper demand. However, more supply hasn’t come in yet. But it’s coming......
@matthewjames1172
4 ай бұрын
@@stephenn88 ad hominem much?
People spend as much on drugs and alcohol as health.
@RainMan52
4 ай бұрын
how do you know that?
@Gertrude12345
4 ай бұрын
Maybe more.
@Carolinapetroska
4 ай бұрын
Definitely true. Many Canadians don't have their priorities straight !
@samoday2992
4 ай бұрын
Has a direct correlation with how miserable life is in Canada
@susanstewart1402
4 ай бұрын
That surprised me too. Definitely not in our house.
Global warming might help.