Maxime Bernier is the leader of The Peoples Party of Canada. He joins us today to talk about immigration, the economy, and Canada's involvement in the Russia - Ukraine conflict.
Maxime's math is a little bit off. If the Bank of Canada met its 2% target, over 10 years the CPI would show inflation increasing by 21.9%, not 25%. It would take 11.3 years to get to a 25% increase. Also, the Bank of Canada estimates that the true rate of inflation after adjusting for measurement error is 1.5% or 1.7% after one adjusts for measurement error, meaning a true inflation rate of 16.1% to 18.4% over ten years. I agree that this is still too high and the target inflation rate should be reduced.
Maxime's math is a little bit off. If the Bank of Canada met its 2% target, over 10 years the CPI would show inflation increasing by 21.9%, not 25%. It would take 11.3 years to get to a 25% increase. Also, the Bank of Canada estimates that the true rate of inflation after adjusting for measurement error is 1.5% or 1.7% after one adjusts for measurement error, meaning a true inflation rate of 16.1% to 18.4% over ten years. I agree that this is still too high and the target inflation rate should be reduced.