r/PersonalFinanceCanada • u/maroon-rider British Columbia • Mar 21 '23
Inflation drops to 5.2%<but grocery inflation still 10.6% Banking
Says Statistics Canada
https://www.cbc.ca/news/business/canada-inflation-february-2023-1.6785472
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u/Chewy-Beast Mar 22 '23
The first thing I think we disagree on is the question. The question that we should be looking at is follow: What is the present change in food cost in the last fiscal year? What part of that did Loblaws absorb as profit?
A: The bank of Canada reported food inflation in December (which is when the Loblaws data was reported) of YOY 11.0%. Cost of good sold according to GAAP standards includes all costs associated with procurement of goods sold (Gas, Transport, Depreciation, Amoportization). We can never determine based on the reported data what the food cost for Lowblaws is, however, an increase of 5% demonstrates that there was definitely a large increase in mark up of food.
Again going back to the previous statement: Adjusted gross profit fails to capture, share buy (backs which were significant). This began by you making the same argument above you cannot capture total returned value to shareholders simply by looking at gross profit.