I’ve been waiting to write a post like this for awhile! Today, the Canadian dollar hits $1.07. That’s absolutely astronomical compared to only a few years ago…Canadians born 40 years ago barely remember a similarly valued loonie. For the most part, for Canadian consumers, this should be a blessing. Most luxury items arrive here from the states and so, under normal arguments, Canadians should be buying these items at a pretty significantly reduced rate! But it hasn’t panned out. The Finance Minister recently went on air with a Harry Potter book to (pathetically) illustrate the price issues and “demand” retailers reduce prices. Why the differential? Because everything is technically shipped via the US and the middlemen have to make their cut, you know? So despite the parity++ exchange rate, there’s a “fee”. This place, as an entire country, has an economy the size of California…it just doesn’t have the clout to get straight shipping. But…certain items are both produced locally, priced *very relatively* in US dollars. Most notably, these things include grain and oil. Of all things, prices should remain stable against an absolutely useless US dollar. For oil, as I’ve seen it from a consumer perspective, it’s been true. I’ve paid roughly $0.97 CAD/liter for unleaded gas since I moved here in ~fall of 2005.
But today I had the most interesting experience. Fairmount bagels and St. Viateur bagels are sort of like the local version what of Krispy Kreme was for me in the deep (US) south. This is where you stumble in to at 3 am and they still have hot, fresh baked goods to sop up some of the damage done the evening prior. I, ahem, walked gracefully in to Fairmont bagel this evening after a good time at Dieu du Ciel, and discovered that the sign had been revised from $1.80 to $2.00 for a (delicious) pretzel. Now, OMFG, $0.20 is not asking a lot, even given my deep love and large-scale consumption of pretzels, but still, it creates apparent shockwaves. Now, I hadn’t been to either Fairmont or St. Viateur in, oh, 2 or 3 days, but somehow by the time I had discovered this incredible change the CBC had already picked it up!
Damn…that is some seriously up to date reporting! So much for blogger “realtime”ness.