Economists say there are a number of factors driving up food prices, but they expect food inflation to slow over time. Here's a look at what’s behind Canada’s high grocery prices and what to expect in the coming months.

TLDR; climate change, Russia, supply chain not recovered, labor shortages; more price increases expected :/

  • EhForumUser@lemmy.ca
    1·
    1 year ago

    Inflation is not prices, it’s a rate of increase of prices.

    Inflation attempts to measure the decreasing value the of currency as observed over time. The change in price across a certain basket of goods is the proxy used to determine that.

    Even if Inflation is at 0%, prices won’t decrease

    All else equal, a decline in value of the currency means that price will rise. However, there are two sides to every transaction. The thing on the other side may also decrease in value. If that other thing decreases in value faster than the currency, then it is possible for inflation to be >=0% and for the price to still fall.