Canada’s inflation rate hit a 10-year high in May as energy and food prices soared, Statistics Canada reported on June 15.
The year-over-year consumer price index increased 3.9 percent in May, the largest increase since November 1991.
The federal agency said energy price increases were the “driving force” behind the increase. A 16 percent boost in the energy price index accounted for one-third of the inflation increase.
Food was not far behind, in part because the good times in the beef sector are being passed on to consumers. The food price index accounted for one-quarter of the overall inflation jump.
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“Higher prices for beef, fresh fruit, restaurant meals and fresh vegetables helped push up the food index 5.2 percent on an annual basis,” Statistics Canada said.
Average consumer beef prices were up 19.2 percent while fresh fruit products cost on average 18.7 percent more than a year earlier.
Resort meeting slammed
Agriculture Canada has come under fire because of a managers’ retreat in a British Columbia resort.
Although the government did not release the cost and insisted the gathering was a regular annual affair that allows departmental managers to discuss policies and departmental issues, news reports said it cost at least $190,000.
The gathering was led by deputy minister Samy Watson. Minister Lyle Vanclief did not attend.
Canadian Alliance agriculture critic Howard Hilstrom said it was a waste of money and “a slap in the face” to farmers.
“It has been clear for a long time that the Liberal’s spending priorities are wrong and do not include Canadian farm families,” he said in a June 13 release. “This bureaucratic junket is just one more graphic demonstration of this fact.”
GMO labelling
The food retail giant Loblaws has decided to stop its suppliers from labelling produce free of genetically modified organisms. Critics say this shows the government’s GMO labelling policy is inadequate.
The government view is that voluntary labelling rules are the answer and a multi-year study of the issue by the Canadian General Standards Board is the best route.
As Parliament wound down for the summer, Bloc Québecois agriculture critic and GMO opponent Suzanne Tremblay said the Loblaws decision showed chaos and a lack of government leadership.
She wants mandatory GMO labelling.
Vanclief said the study is continuing but recommendations are not expected from the committee until at least autumn.
“I encourage that group to get its work done and get its recommendations to us so that we can move forward in this area,” he said in the House of Commons.
Food inspectors contract
Labour peace has been guaranteed at the Canadian Food Inspection Agency, at least until the end of next year.
On June 14, the Public Service Alliance of Canada announced that the majority of its 3,200 members at the CFIA had voted to accept a new contract that will be in effect until Dec. 31, 2002.
PSAC said the agreement, retroactive to Jan. 1, 2000, will increase the CFIA payroll by 17 percent.
Workers receive a 1.25 percent increase effective Jan. 1, 2000. There was another 2.5 percent increase effective July 1, 2000. A four percent increase kicks in this July 1.
