OTTAWA, Ontario (LifeSiteNews) — Canada’s central bank is blaming media for creating fear of rising food costs as inflation and national debts are rapidly increasing under Prime Minister Justin Trudeau’s leadership.
The Bank of Canada, a Crown corporation and Canada’s central bank, has complained that inflation worries are partly caused by media coverage, according to information obtained by Blacklock’s Reporter.
“News coverage that people focus on may affect their perceptions of inflation,” said the Bank of Canada in its third quarter report titled Canadian Survey of Consumer Expectations. “Consumers are more interested now in news about inflation than they were before the COVID-19 pandemic.”
“Interviews showed respondents tend to focus on stories about how inflation continues to be higher than before the pandemic as opposed to stories on the easing of inflation,” wrote the Bank. “When asked about the economy and inflation one respondent said, ‘With what I hear from my surroundings, what we hear in the media, it’s rather discouraging.’”
However, the Bank failed to address the fact that while news coverage may cause Canadians to worry about rising costs, the media is only reporting what many economists see as the result of the deficit spending by the Bank of Canada and the Trudeau government.
In March, after it was reported that the Trudeau government has spent more money per person per year, Jake Fuss, the associate director of the Centre for Fiscal Studies at the Fraser Institute, warned that it is this type of spending that creates and fuels inflation.
“Ultimately, the consequences of higher spending, as we’ve seen in recent years, is leading to higher deficits. That means there’s higher debt and growing interest payments that have to be paid by taxpayers,” Fuss told the National Post. “You ultimately can’t just continue increasing inflation-adjusted per person spending, without there being consequences associated with those decisions over a long time period.”
Nonetheless, the report does acknowledge that the “growing cost of living remains the most pressing concern for consumers,” and that “[h]igh inflation and rising interest rates have had a negative financial impact on most households and are causing more households than last quarter to reduce spending.”
According to the report, Canadians told the Bank that they have been forced to make changes to deal with the increasing inflation. 58 percent of respondents cut household spending, while 34 percent paid off debt, 24 percent kept their savings in cash, 7 percent requested wage increases, and 6 percent chose to retire later.
“Consumers’ perceptions of current inflation remain elevated and are leading to persistently high expectations for inflation over the next 12 months,” wrote the Bank. “The gap between perceptions of inflation and actual inflation is unusually wide.”
“This is likely because many consumers form their views based on their own shopping experience,” said Consumer Expectations. “Households with a large gap expect high price growth for essentials like food and housing.”
However, despite the Bank of Canada’s blaming of the media for inducing panic, Bank of Canada Governor Tiff Macklem recently admitted that food costs are of particular concern as “[m]eat’s up six percent, bread’s up 13 percent, coffee’s up eight percent, baby food’s up nine percent. If you look at food overall it is up nine percent.”
Macklem revealed at the time that food prices are rising significantly faster than the headline inflation rate – the overall inflation rate in the country – as staple food items are increasing at a rate of 10 percent to 18 percent year-over-year.
To combat this inflation, the Bank of Canada has raised interest rates to 5 percent, the highest benchmark rate in 22 years. Another increase is expected in October.
In addition to deficit spending, others have pointed to the Trudeau government’s ongoing carbon taxes and energy regulations as one of the reasons for the sharp increases in the cost of living.
According to a March report, Trudeau’s carbon tax is costing Canadians hundreds of dollars annually as government rebates remain insufficient to compensate for the increased fuel prices.
The increased costs are only expected to rise as a recent report revealed that a carbon tax of more than $350 per tonne is needed to reach Trudeau’s net-zero goals by 2050.
Currently, Canadians living in provinces under the federal carbon pricing scheme pay $65 per tonne, but the Trudeau government has a goal of $170 per tonne by 2030.
Despite numerous reports indicating Canadians are experiencing financial hardship, the Trudeau government has largely ignored the pleas of those asking for help while consistently denying their policies and spending have any impact on inflation or the economy more broadly.
Deputy Prime Minister and Finance Minister Chrystia Freeland recently refused Newfoundland and Labrador’s appeal to pause clean fuel regulations and reduce the carbon tax as Maritimers struggle to make ends meet.
However, some western provinces have declared they will not follow some of the government’s new regulations but instead focus on the well-being of their citizens.
Alberta and Saskatchewan have repeatedly promised to place the interests of their people above the Trudeau government’s “unconstitutional” demands while consistently reminding the federal government that their infrastructures and economies depend upon oil, gas, and coal.
The Trudeau government’s current environmental goals – in lockstep with the United Nations’ “2030 Agenda for Sustainable Development” – include phasing out coal-fired power plants, reducing fertilizer usage, and curbing natural gas use over the coming decades.
The reduction and eventual elimination of the use of so-called “fossil fuels” and a transition to unreliable “green” energy has also been pushed by the World Economic Forum (WEF) – the globalist group behind the socialist “Great Reset” agenda – an organization in which Trudeau and some of his cabinet are involved.