August 18, 2008

Video Editorial

Gas prices ignite “all items” inflation rates in Canada and U.S.

While the Canadian inflation rate is being held down by price decreases for longer-term, more durable goods such as vehicles, computer equipment and mortgage prices, the day-to-day living expenses for average Canadians and Americans — gas and food, for example, — are going up.

Although both the U.S. and Canadian economies are being restrained by rising energy costs, the similarities stop there, says CanaData chief economist Alex Carrick. While extremely tight credit costs pinch the U.S. economy, the Canadian economy is feeling the stress of the manufacturing industry’s difficult adjustment to the higher-valued Canadian dollar.

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