this post was submitted on 15 Jul 2023
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Keep in mind that they manipulate the CPI to make it look not so bad.
For example, if the price of a luxury item spikes by 50% (like a lot of grocery items did in the last year), they'll remove it from the basket and put in a cheaper alternative instead. The idea is that what people would do, but the result is a figure that doesn't represent actual price increases.
The main purpose of CPI is to see if Canadians can still make ends meet. It's not supposed to express price increases, but cost of living increases.
People change their habits as prices change. That's well-known.
So maybe it should be called the Buying Habits Index then.
We could call it the Cost of Not Dying if you prefer