Paul Martin's Business Update - January 30th

Paul Martin's Business Update - January 30th

Sometimes the broadly-based numbers don’t connect when examined on a more micro basis.

That’s the case with the inflation numbers we’ve been exploring this week. The national figures – those from StatsCan – say Saskatchewan’s inflation rate or Consumer Price Index last year was roughly 1.5 per cent.

This tally is based on a basket of goods and while some things went up others, notably automotive fuel, went down. But the numbers tweaked a nerve with one listener who says power rates are going up, so are civic taxes and nursing home fees are going up in the double digit range so there’s a disconnect, further noting that these are largely attributable to government.

That raises an interesting point as governments have no competition to keep cost increases in check, only the resolve and ingenuity of politicians to find savings or address issues such as unfunded pension liabilities. The gap between the public and private sector is even more noticeable when you consider that with a broad rate of 1.5 per cent, the private sector must be doing exceptionally well to offset the pressure from public sector rate hikes.

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