Carbon pricing accounts for 0.15 percentage points of inflation, BoC governor says
CTV
Canada's price on carbon only contributes 0.15 percentage points to inflation, Bank of Canada Governor Tiff Macklem reiterated on Thursday amid claims by the federal Conservatives that the pricing plan is a significant driver behind inflation.
Canada's price on carbon only contributes 0.15 percentage points to inflation, Bank of Canada Governor Tiff Macklem reiterated on Thursday.
Macklem first cited the figure to the Standing Committee on Finance in February, but repeated it while speaking to the Calgary Chamber of Commerce on Sept. 7, amid claims by the Conservatives that the federal carbon pricing plan is a significant driver behind Canada's high inflation rate.
"The carbon tax goes up periodically and when we forecast inflation, we know what the carbon tax is going to do, so yeah, we build that into our forecast just the way we build in other fiscal decisions," Macklem said on Thursday.
"The contribution that's making to inflation one year to the next is relatively small. If you want me to put a number on it, it's in the range of 0.15 per cent, so quite small."
The federal carbon price rose on April 1 by $15 per tonne, to $65: the most recent in a 12-year timeline to lift the price to $170 by 2030.
Carbon pricing is based on the idea that higher fuel costs will result in lower usage and an overall decrease in emissions. To counterbalance the impact of those higher costs, the federal government issues rebates to Canadians in the form of the climate action incentive payment.
According to a 2022 report by Parliamentary Budget Officer Yves Giroux, raising the carbon price to $170 per tonne by 2030 will eliminate an additional 96 million tonnes of emissions – equivalent to the emissions of 21 million passenger cars – compared to the current rate of $50 per tonne.
SpaceX on Tuesday launched another Starship rocket, but passed up catching the booster with giant mechanical arms.
Caring for a senior pet is no walk in the park, especially when the pet can't walk at all. A Colorado woman was shocked to find her dog's wheelchair missing from the porch Tuesday morning
New York City on Monday issued its first drought warning in 22 years after months of little rain -- and will restart the flow of drinking water from an out-of-service aqueduct as supplies run low.
Six monkeys were still on the loose early Monday after dozens escaped earlier this month from a South Carolina compound that breeds the primates for medical research, according to authorities.
Hundreds of organic baby- and toddler-sized rompers sold by an Ontario-based sustainable clothing company have been recalled over concerns they could catch fire and injure children, according to Health Canada.
Joe Biden toured the drought-shrunken waters of the Amazon River’s greatest tributary Sunday as the first sitting American president to set foot in the legendary rainforest.
The US Centers for Disease Control and Prevention is investigating an E. coli outbreak in at least 18 states linked to some organic carrots, which has led to at least one death.
Tropical storm Sara drenches Honduras’ northern coast, with flash flooding and mudslides in forecast
Tropical storm Sara stalled over Honduras on Saturday. The area could see life-threatening flash flooding and mudslides through the weekend.
It's a growing trend online: fragrance influencers who rave about the beauty, sexiness and notes of vanilla in perfume have caught the attention of Canadian teenagers who are, in turn, flocking to cologne counters across the country.
The Edmonton Valley Zoo is debuting two red panda cubs named after the mischievous twin wizards in the "Harry Potter" series.
While it remains small compared to established online spaces such as X, Bluesky has emerged as an alternative for those looking for a different mood, lighter and friendlier and less influenced by Musk.