What caused our inflation to be 7%?

[tweety]

I only researched your example of George Weston Limited. Net profit margin is currently ~5%. Up from an average of closer to 2% over the past 20 years. From almost no profit margin, to almost razor thin profit margins. And you think that is the cause of inflation?

You have it backwards. The slim profit margins were possible because of stable conditions and efficiencies and low capital costs, and exploitation of cheap off shore labour of recent decades. All of those factors have been deflationary, now as we return to normal, as all those factors unwind, we view a return to the mean as inflation. Any business needs an ROI that compares with the cost of capital. The example you provided mirrors the cost of capital very closely. Who would invest in a grocery chain for 2% profit when GIC's are over 5%? But back when GIC's were closer to 0%, the 2% ROI was a great investment.

I guess you can choose to ignore the mountain of evidence that corporate profits are at record levels.

[tweety]

and gouging is not inflation . . . gouging is gouging.

But gouging is included in inflation as it is part of the CPI calculation.

https://www150.statcan.gc.ca/n1/daily-quotidien/221116/cg-a001-eng.htm

The interesting part of the chart is how high food and energy affect the CPI