94% Say Yes: We’ve Noticed

Inflation is a hot topic everywhere, and Knowledge Bureau Report readers offered valuable commentary on the subject in June. Of the 94% of readers who said "yes" to the June poll question,  many of you pointed to non-discretionary items as the first thing to go as prices rise. As food prices go up, the choice to go out for dinner is made less often. Expenditures for necessities such as housing, transportation, gasoline, electricity and food must still be made, and we have little control over the price of these staples. Although it is possible to cut back on the amounts that we consume, price increases prevent households from making much headway.

Several readers remarked that repackaging smaller quantities is allowing food suppliers to keep charging the same price for less product! We can expect to see the "less for moreî trend in other areas as well. As governments at all levels struggle to rein in debt, we will have to pay more for basic services through higher user fees and certain taxes. As reader Sharon points out, "If you need gas for driving or eat food, you have to notice inflation. My property taxes alone are going up 4.6% this year.î

Please let us know what you think about the July poll question: Should postal disruptions be allowed in May and June when millions count on the service for their tax refunds? We look forward to hearing from you!

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