Description: Inflation in Canada is now at the highest it has been in 30 years! The December Consumer Price Index (CPI) of 4.8% is a rate Canadians have not seen since 1991. While many may have noticed rising costs for fruit such as oranges and apples, or a rise in meat prices too, anything with a computer chip also seems to be going up in the face of a supply shortage. A number of factors appear to be behind the increases.
Date: January 19, 2022
1) What price increases have you noticed the most in trying to manage your personal budget?
2) The article notes several forces at work in this inflationary push. Which one of them do you think is the most significant?
3) Chapter 10 of Wiley’s Managerial Accounting: Tools for Business Decision Making deals with the importance of budgetary planning. How might accountants have to adjust their budgeting techniques to deal with rising inflation?