Everything Costs More Because the Algorithm Says So | The Walrus

"Analysts warn some imported goods could get more expensive as firms reassess costs. Those price variations may have less to do with tariffs and more to do with how companies choose to respond. In the recent past, firms have used such moments as a convenient cover for padding margins-the kind of "seller's inflation" that was rampant during the pandemic. But the fixation on tariffs and inflation obscures a different shift revolutionizing pricing: algorithms."

"The Canadian Anti-Monopoly Project warns automated tools are reshaping what Canadians are charged for essential goods and services, including groceries and fuel. Companies can now use software to tailor prices based on everything from our browsing patterns, location, loyalty history, device type, and operating system. The same item can appear at one amount for you and another for someone else, depending on who you are, when you see it online, and what the algorithm believes you are willing to pay."

Rising cost of living and food prices, especially coffee, are increasing consumer concern about wages and tariffs. Canada faces moderate tariff exposure, and some counter-tariffs were lifted, yet supply-chain uncertainty can still raise import costs. Firms reassessing expenses may pass costs to consumers or use such moments to increase margins, creating "seller's inflation" seen during the pandemic. Automated pricing tools now enable firms to tailor prices using browsing history, location, loyalty status, device and operating system, producing individualized prices. The illusion of a uniform marketplace is fading as algorithms and corporate pricing choices produce variable and often higher prices for essentials.

Read at The Walrus