We Need to Stop

It isn’t often I got wound up about something, but when I do, I am sure as hell gonna let you know. 

If I have to hear one more person say ” Well, if we exclude housing increases of 30% from the inflation number, it is back under 2% ” I am gonna lose my mind. That is not how it works!!! Yes, the BOC is responsible for a large percentage of the increase in housing costs due to higher interest rates. THAT WAS THE ENTIRE POINT!!!!!

The entire point of the inflation reading is to compare a basket of goods or be representative of the ENTIRE economy. Shelter, food, entertainment, electronics etc. You can’t pick and choose what to add and remove every month to suit your narrative. That is not how it works – that is not how any of it works. If you pick and choose the inflation number is completely meaningless as you will end up having the number be representative of a certain political party, or wealthy lobby groups.

The Bank of Canada is well aware that they are responsible for the 30+% growth in shelter costs over the last 12 months. They are trying to slow down inflation, and one of the surest ways to do that is to increase things like mortgage service costs, rents etc. More money spent on shelter, less disposable income to spend on other things. Now of course that is an oversimplification, but you get the idea.

This whole freakin narrative that if we excluded shelter costs we would be back under 2% is probably the largest hot mess of a dumpster fire of mis truths I have ever heard. Please, for god sake stop pushing this narrative. How about we just exclude everything that went up and inflation would be 0%??? Why not. Makes about as much sense as removing shelter costs, and claiming inflation is really only 2%. Back in the Winter of 2022 when the Russia/Ukraine conflict started – oil spiked, and it drove gas prices over $2.00 a litre in SW Ontario. Never did we suggest that we should simply ” remove ” oil from the inflation index since it was all caused by a war. That would have been insane. The Annual inflation reading is not meant to tell you who caused it – just to report the number. 

As an industry we can – and should do better than that. Customers and consumers count on us to provide real advice, free of BS number manipulation. If we continue to push this narrative, we do an injustice to our clients, and we are also part of the problem. Simply removing one part of the equation won’t have a difference to our clients. Our clients are feeling the increase in shelter costs – we are feeling the increase in shelter costs – so it damn well should be reported in the inflation reading – regardless of who caused it.

People say ” But Ryan, if we removed that component ( since it is driven by the BOC ) we get a more accurate cost of living number”. Well, if my aunt had balls she would be my uncle, but we don’t play in a world of ‘ifs’ we work in a world of reality. No one seemed to want to remove shelter costs when low rates were keeping inflation down, so you can’t have your cake and eat it too.

If we continue to encourage manipulation of the numbers we will lose the trust of the public, and our customers and clients. Anyone associated with real estate, lending, properties etc will be under a microscope going forward – lets not add to it but pushing a self centred narrative that really has no basis in fact. When you start to change data to suit your own agenda, you are no better than a politician trying to win at all costs. 

So, instead of trying to change the rules of the game to suit you – just become a better player. Sharpen your skills, perfect your craft, and become the trusted advisor that your clients need right now. That is what people need to hear and see from us. Let our industry be what gets people through the high inflation – instead of trying to lie to people and tell them it aint that bad.