The National Post reports in its Tuesday, July 22, edition that CIBC economist Katherine Judge says consumer markets are still getting a boost from pent-up demand and extra savings that consumers accumulated during the pandemic. The Post's Simon Tuck writes that wages, meanwhile, have been growing faster than inflation since mid-2024, so household purchasing power has also increased. In recent months, the Trump administration's tariff war has started to put upward pressure on inflation on both components and finished goods and will continue to do so unless they are resolved. Economists say that prices do not normally drop unless demand falls because the economy is in a recession or governments adopt severe cost-cutting measures. Neither has happened since the pandemic. The federal government kept running large deficits in spending. While it has spoken recently about cutting costs in the bureaucracy, it also plans to boost outlays on defence and infrastructure projects. As poor weather played a role in fuelling inflation during the pandemic, it is still a major factor. A new study found that foods affected by heat, drought, floods and other climatic extremes contributed directly to higher consumer prices.