The method Statistics Canada uses to calculate the Consumer Price Index doesn’t work well when there are big changes in consumer spending patterns, which is exactly what is happening due to COVID-19. In this guest blog, Arthur Berger discusses how current inflation calculations are misleading and work against the financial security of low and middle income Canadians. People in low income, such as seniors who depend on OAS and single parents who rely on child support payments or government social programs, will not receive the increase in income they need to keep pace with the rising cost of living. Taxpayers will also be adversely affected, as income tax brackets will move in the wrong direction. This will put more income into higher tax brackets even for people whose income did not increase. Read More ….
Arthur Berger retired in 2019 after 8 years as the head of data and statistics at the Bank of Canada. Prior to that, Arthur worked at Statistics Canada for 24 years.