Step 1: Read the Instructions Document for how to collect your data.

Part 1: Data Activity

Question 1:

Of the product and product group options, which did you choose to analyze? Of the other geographic regions, which did you choose to analyze? Briefly explain your choices.

Using your downloaded data, calculate the 12-month inflation rate for the 'All Items' category for both Canada and your other geographic choice. Present a clearly communicated graph with these inflation rates. This graph will have time on the x-axis and inflation rate on the y-axis.

12-month inflation rate example: For January 2020, you would use the data from January 2020 and January 2019 to calculate the 12-month inflation rate. We are calculating the % increase in the price level from January 2019 to 2020.

Present your clearly communicated graph below:

Comment on the trends that you see in your graph. What similarities or differences are visible between Canada and the other geographic location that you chose?

Part 2: Reading Activity

Read the two webpages from the instructions document published by the Bank of Canada. After reading the two webpages, discuss the following questions:

Look at your calculated CPI inflation rates for the All Items category for the most recent periods for Canada. Do you thinkthis appropriately captures the inflation that you personally have experienced? Explain why your consumer basket may have experienced a different rate of price changes than what is reported for the All Items Category for Canada. Use the information presented in the readings to motivate your discussion.

Using excel, find your highest and lowest reported inflation rates for the periods you analyzed in Question 1. What was the highest 12 month inflation rate? The lowest? If those inflation rates were to be sustained, how many years would it take for the price level in Canada to double? (Hint: Rule of 70)

If the inflation rate were to remain at the highest reported level you previously identified, explain one reason this would harm Canadians. Use the information presented in the readings to motivate your discussion.

Assignment 2 instructions : CPI and Inflation Econ 104 1 https://www.reuters.com/business/retail-consumer/canada-inflation-rate-jumps-40-aug-higher-gas-prices-2023-09-19/ Motivation: In Canada, the Bank of Canada aims to keep inflation at 2%. There is an inflation-control target range of between 1%-3% that was agreed upon by the Bank of Canada and the Minister of Finance. In August 2023, the inflation rate remained high at 4.0%1 . There have been a number of news articles discussing inflation and the cost of living, but what does this actually mean? Even before the pandemic and these unexpectedly high inflation rates, inflation impacted your life as both a student and potential member of the labour force. Many colleges and universities tie allowable tuition increases to the inflation rate. Many union collective agreements are tied to the inflation rate. Many rental agreements are also tied to the inflation rate. As CPI and inflation play a large role in our daily lives, this assignment aims to introduce you to both collecting and understanding the data. Part 1: Data Collection - Instructions Question 1: Collecting the Data Head to: https://www150.statcan.gc.ca/t1/tbl1/en/cv.action?pid=1810000401 Click on 'Add/Remove Data' Under Geography: select 'Canada' and one other geographic area of your choosing* Under Products and Product Groups: select the category "All-Items" and one category of your choosing* Under Reference Period: Set your reference period to: March 2013- March 2024 Under Customize Layout: Have Geography and Products set to Row and Reference Period as Column *For the location and product/product groups selection of your choosing, you will choose one category that you feel is important, relevant, or interesting to you. Apply the changes and now you can download your data. Download in excel, and perform the analysis using your excel data. Part 2: Active Reading We are going to be reading two webpages published by the Bank of Canada that discuss CPI and inflation. You can read "Understanding Inflation" here: https://www.bankofcanada.ca/2020/08/understanding-inflation/ You can read "Understanding the Consumer Price Index" here: https://www.bankofcanada.ca/2021/05/understanding-consumer-price-index/ If you paraphrase or directly quote either of the sources - you must include an appropriate APA citation. Learning Objectives: You will use the StatsCan website to download CPI data and calculate the inflation rate. You will illustrate your understanding of good graphing procedures by adding clear axis titles to your graph, adding a clear title to your graph, and by adjusting the axis range to showcase the data. You will critically analyze two articles and discuss how it relates to the inflation Canada is currently experiencing and what you have learned in class