Inflation Pies
Discover personal finance articles on this website! Trevor shares his industry experience and knowledge through simple stories. May these short pieces encourage us to be better stewards of our resources.
One of my favourite food spots in the Ottawa area is called Aladdin’s Bakery. I often ate at their Carling location, which was close to my high school and childhood home. They are a Middle Eastern bakery and have freshly made cheese, meat, and zaatar pies from an oven. As a family, we also catered Aladdin’s to our community gatherings and events. I loved a freshly baked cheese pie.
In fact, I ate them so much that I jokingly considered Aladdin’s as a currency in school. If a friend wanted help with homework, they gave me one cheese pie. When I bet on a sports game, I offered one or two cheese pies. If I was nice, I gave a friend one cheese pie if they did well on a test. They used to cost about $1.25 back in those days. Now they are about $3.75. When it comes down to it, cheese pies are more expensive because of a macroeconomic nuisance: inflation.
Inflation means price increases. The Bank of Canada said this in March: “The inflation story in Canada has three key elements. The first is the global shift toward goods and away from services during the pandemic, combined with pandemic-related disruptions to the production and delivery of goods. The second is a broadening of price increases to everyday items like food and energy, making it more difficult for consumers to avoid paying higher prices. And the third is the strength of the Canadian recovery and the overall balance between demand and supply in our economy.” The problem is that inflation makes things more expensive. We’ve seen our gas, grocery, and consumer products cost more. And I’ve also seen my Aladdin’s pies become more expensive too! We might see price increases for the foreseeable future; and that will affect our budget and our behaviour.
A key thing to consider during inflation is how we react. Are there certain things we tend to avoid when prices increase? Are there substitutes we can shift towards instead? For example, even during this inflationary period, I am going to buy my cheese pies. Nothing is going to stop me from buying and eating them. But other things, like gas, I am not willing to pay as much. Instead, you’ll find me walking to the grocery store and to Church.
Exercise: in an inflationary environment, write down the things you want to continue purchasing. You could also write down the things you now want to avoid. And then you could think about cheaper substitutes if you’re budget conscious. This helps us become self-aware, financially smart, and intentional about our behaviours. May you have a wonderful summer filled with good food, memories, and appreciation for the things you enjoy. For me, I won’t let rising prices eat away my joy—as I continue to devour those Aladdin’s cheese pies.