Question

3. Go to Statistics Canada to answer these questions. a. Look for the most recent data on CPI (all items, not seasonally adjusted) and obtain the following (20%): Canada Your province (write the name) CPI Sept 2020 Inflation August – Sept 2020 Inflation Sept 2019 – Sept 2020 b. Comment about the level of inflation and the possible causes for these rates. Remember to use economic arguments.

Answer 1

Canada ( British Columbia )

CPI of British Columbia in Sept. 2020 - 132.3

Inflation rate in british columbia in August - September 2020 = 0.2 %

inflation sept. 2019 to sept. 2020

sep. 2019 - 2.4

oct - 2.2

nov - 2.2

dec - 4.5

jan - 2.3

feb - 2.4

mar - 1.2

apr - 0

may - -0.2

jun - 0.5

jul - 0.2

aug - 0.2

sep 2020 - 0.2

From the above data we can clearly see that inflation rates have fallen from sep.2019 to sep. 2020 .

Possible causes of fall of these rates are :

• There may be a general decline of the price level of goods and services
• There may be contraction in the supply of money and credit
• People maybe hoarding money waiting for prices to fall.
• Increased production and technological progress.

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