Inflation and Inflation

When discussing inflation the reference point is usually the Consumer Price Index (CPI) which is a basket of goods consumers purchase. The CPI is an indicator of the changes in consumer prices experienced by Canadians. The change in prices is obtained by comparing through time the cost of a fixed basket of goods purchased by consumers in a particular year. Because the basket of goods only contains products that have not changed or are the equivalent in quantity and quality, the CPI represents pure price movements.

In recent years the CPI has been around 1.5% - 3%. From October 2012 to October 2013 the CPI was 1.5%. One more thing you should know is that since 2002 prices have increased almost 27%. So why do I mention it? Construction prices have been sky rocketing. The CU Plex in North Battleford doubled in price as they went from fundraising to final product. For infrastructure repairs we have heard stories where quotes on projects came in 10%-20% higher than expected; we experienced that as well a couple of years ago. Recently Bernie was told that the new normal for a tax increase to address infrastructure issues is 4%; I almost choked. I want to see our property taxes hold the line to the broader inflation rate.

One more thing: as I reviewed a draft of another city's budget I am encouraged. We have a healthy budget to serve Kindersley including addressing our infrastructure deficit (asset cost recovery). I am also looking forward to the commercial, industrial, and residential growth hoping there will be a net benefit on property tax rates.