Gasoline prices are spiking at yet another higher plateau today in Ottawa. Gas is now averaging almost $1.10 per liter here and talk of $1.29 per liter in Vancouver. What is causing this? No one is really saying, they just keep saying, "Get used to it baby", much like an abusive husband would (not to denigrate or trivialize domestic violence in any way). The amount of money I spent driving from Ottawa to London and back this weekend was nearly $150.00 (if not a bit more), and I keep asking, how is this NOT going to cause inflation? I think it is not a question of IF inflation, it is WHEN, and it's associated higher interest rates.

In the world of constant price drop, Computer Prices and components continue to drop another 1.4% from January to February, which amazes me. This is really the only industry where the "make it cheaper" still continues, but then again, they are also the ones doing the most "out of country" manufacturing too.

Getting back on the Oil angle Crude Oil production is up 5.4% over from last February, which means Canada is producing more of the "liquid Gold". So supply is increasing, but so is the price? That means consumption must be still out stripping production (if I remember Econ 101), and I don't think it's just Canadians doing that either.