Looking at recent studies, it becomes clear that inflation spikes primarily do not result from carbon pricing or other indirect taxes. Instead, the main culprit behind these surges is the escalating energy cost. This concept is further backed by data from Statistics Canada, which shows that from 2015 to 2023, indirect taxes like the carbon tax have only nudged consumer prices up by 0.6%. This simple fact helps us understand the proper roots of our current inflation situation.
Please read the article at https://policyoptions.irpp.org/magazines/december-2023/carbon-price-affordability/ by Trevor Rombe and Jennifer Winter.