The IISD report is talking about a specific period (February 2021 to June 2022) where 33% of inflation can be attributed to oil prices. Outside of that 16 month period though (which was during the absolute peak of oil prices), oil would contribute much less to inflation.
I disagree with the methodology of the False Profits report. A big part of their 43% cost of living increase is attributed to interest rate hikes by BoC and associated job losses. They are also benchmarking to 2019 oil prices (to avoid the effects of the pandemic), but are ignoring the fact that oil prices had been artificially depressed by OPEC overproduction since 2014. If you look at historic oil prices, we’re still significantly below the 2004-2014 inflation-adjusted average.
Overall though, I think both of these reports are looking at specific moments in time, and oil prices aren’t nearly as impactful on our cost of living as they want us to believe.
https://www.iisd.org/articles/deep-dive/fossil-fuels-drive-inflation-canada has 33%
https://www.falseprofits.ca/reports 43%
The higher numbers I had in my head were probably related to specific products/industries
Thanks for the links.
The IISD report is talking about a specific period (February 2021 to June 2022) where 33% of inflation can be attributed to oil prices. Outside of that 16 month period though (which was during the absolute peak of oil prices), oil would contribute much less to inflation.
I disagree with the methodology of the False Profits report. A big part of their 43% cost of living increase is attributed to interest rate hikes by BoC and associated job losses. They are also benchmarking to 2019 oil prices (to avoid the effects of the pandemic), but are ignoring the fact that oil prices had been artificially depressed by OPEC overproduction since 2014. If you look at historic oil prices, we’re still significantly below the 2004-2014 inflation-adjusted average.
Overall though, I think both of these reports are looking at specific moments in time, and oil prices aren’t nearly as impactful on our cost of living as they want us to believe.