Everyone’s talking about inflation cooling—but is it really? Or are we just learning to live with higher prices?

As a financial advisor working with Canadian families and business owners, I’m starting to question some of the usual narratives about what’s driving inflation—and whether it’s actually going to come down anytime soon.

Here are a few key points I believe deserve more public discussion:

Is Consumer Spending Really Driving Inflation?

Mainstream headlines often focus on pent-up demand and post-pandemic spending. But does that explain the cost of food, fuel, or insurance?

Let’s ask: Are we looking in the wrong place for the root cause?

The Role of Money Supply and Government Spending

Canada saw massive monetary and fiscal expansion over the past few years. While stimulus helped in a crisis, we may now be seeing its long-term side effects.

Discussion point: Is the impact of this money creation being underestimated in the inflation conversation?

Government Taxation and Regulatory Costs

From carbon pricing to bracket creep, taxation levels are quietly adding pressure on prices. Businesses pass those costs on to consumers, often without it showing up directly in CPI stats.

Discussion point: Could the rising tax burden be fueling inflation more than we realize?

Labour Shortages in Essential Sectors

From skilled trades to healthcare, we’re facing chronic labour shortages. Fewer workers means higher wages and slower output—which affects pricing.

Discussion point: Is inflation now being driven more by supply limitations than by demand spikes?

Shrinkflation and Service Cuts: The Hidden Inflation

Smaller packages, downgraded service, or “new fees” mean you’re paying the same or more—for less.

Discussion point: Is “stealth inflation” distorting our view of economic recovery?

Final Thought

This isn’t a prediction—it’s an invitation to talk. If inflation sticks around longer than expected, it may not be because Canadians are overspending, but because of deeper, structural forces.

What’s your take? Is inflation truly on its way down—or are we entering a new normal of higher baseline prices?

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