It's no secret that America has a serious inflation problem. Though the Federal Reserve insists that our inflation rate is only at around .5%, we've all seen the price of food, rent, healthcare, and energy skyrocket over the past 10-20 years. However, this has been a gradual shift. Canada on the other hand, has just seen the price of every day goods rise precipitously over a very short period of time.
The crash in oil prices has crippled their economic growth, and led to the decline of the Canadian dollar, as well as a predictable increase in the cost of imports like food. For those of us living in the US, this provides a really good example of what life may be like should the dollar take a plunge in the near future.
As a reminder, this all comes courtesy of falling crude prices and the attendant death of the Canadian oil patch. The plunging loonie has added to the woes of a populace already coping with a sharply decelerating economy that, in the hardest hit areas like Alberta, has cause violent crime to spike, suicide rates to soar, and food bank usage to climb by more than a third.