Some people simply cannot make ends meet with skyrocketing inflation

Crippling inflation is forcing average families to choose between groceries, gasoline and childcare, according to Kelowna-Mission Liberal MLA Renee Merrifield.

"I've met with desperate parents who just can't make ends meet," Merrifield told NowMedia Group.

"Life has gotten way less affordable. I've also heard from people who can't afford to put gas in their cars to get to their jobs and there's no viable public transit option for them. I've heard from farmers who are considering not planting their fields this season because it will be too expensive."

Merrifield said there are two things the ruling NDP government can do to ease the pain.

The first is to at least temporarily suspend the 37 cents in provincial taxes that's whopped on top of the price of every litre of gas.

The second is for a one-time boost to the Climate Action Tax Credit.

"A bigger rebate would directly help lower-and-middle-income British Columbians," said Merrifield.

"BC has the highest gas prices in the country, combine that with the increased price of food, including all the essentials of meat, cheese, milk and produce, and all British Columbians are affected."

The hardest hit by inflation are those living paycheque to paycheque, the unemployed and retirees on fixed incomes.

Those groups were already having a tough enough time when inflation was low, but now that it's rampant they have to make difficult decisions such as buying less, or cheaper, food, going further into debt, not filling the car us with gas (if they even have a car), pulling kids out of daycare and dispensing with any sort of non-essential spending.

Today, the Bank of Canada raised its key interest rate 0.5% to 1.5% in an effort to tame skyrocketing inflation, which is currently pegged at almost 7%.

The inflation target for the bank is 2%.

Seven per cent inflation is just one number.

The price jump on gasoline is actually more like 31%, forcing not just the price of gas up at the pump, but the price of everything up because everything we buy and use gets to us by truck, trail, boat or plane that all use fuel.

Rapid inflation is blamed on everyone spending after the pandemic amid constrained supplies of gas, food and housing, which is only exacerbated by the Russian invasion of Ukraine.

The bank's action will likely prompt retail banks to increase interest rates on mortgages and loans, making housing more expensive.

Even if you don't own your own home and rent, rents will also go up in this inflationary environment.

Ross Hickey, an associate professor of economics at the University of British Columbia-Okanagan's faculty of management, has a different take on this round of inflation.

"We're seeing this inflation because there's economic growth and lots of jobs," he said.

"People are spending and that stimulates the economy. It's a good new story in that respect."

However, Hickey recognizes that inflation is uncomfortable, hits those living paycheque to paycheque hardest, wreaks havoc on household budgets and is problematic for people's psyche.

The economist also points out that those who own their own homes are richer, despite inflation, because house prices are at record highs and owners have lots of equity in their homes.

Hickey stressed that the opposite of inflation is deflation.

"Deflation is bad for the economy," he said.

"People pull back on their spending and the downward spiral leads to recession, which leads to unemployment, thus hurting the same people that were living paycheque to paycheque when there was inflation."