Inflationary Pressure Lowers Average Living Standards: Statistics Canada

Inflationary pressures are lowering the average standard of living in Canada, even as wages are rising across the board, according to a new report from Statistics Canada.

“High food inflation, in particular, is putting a severe strain on the cost of living, especially among vulnerable households, as income and savings levels adjust to the withdrawal of pandemic-related aid,” the report entitled. “Investigation into Insights: Recent Trends and Analysis of Consumer Price Inflation.”

“Despite rising wages and incomes, most workers are seeing their purchasing power dwindle as inflationary pressures mount.”

The report, published on February 22, found that across Canada, average hourly wages will rise by more than 5% year-on-year in December 2022, while average weekly earnings will rise by more than 4% in the 12 months to November 2022. rose.

But federal agencies say wage increases are still not enough to keep up with rising inflation.

“Rising costs of living are having a negative impact on net savings and wealth for particularly vulnerable households,” StatCan first reported. black rock reporter.

“While low- and middle-income households have significantly reduced their net savings, younger households are becoming more resource-intensive.”

According to the report, average food prices will rise by nearly 15% between January 2021 and December 2022, well above the cumulative increase of around 9% between 2015 and 2019.

“Canadian food prices are rising at the fastest pace in 40 years,” the report said.

Rising prices associated with gasoline and housing have also contributed to higher overall cost of living, the report said.

It added that rental housing prices have increased in 19 of the last 24 months, with mortgage interest costs rising 18% in the 12 months to December 2022.

“Housing affordability declined significantly in the second and third quarters of 2022 due to higher borrowing costs,” the report said, adding that utility costs were also “mainly driven by household fuel and natural gas. “due to the increase in the price of


Inflation is now at its highest level in 40 years, and consumer price inflation “accelerated to its fastest pace in 40 years” last summer, peaking at about 8% in June, according to the report. reached.

Note that inflationary pressures are not even in all states, with Prince Edward Island and Manitoba recording the largest average annual price increases in 2022.

Another federal agency previously reported that nearly 40% of Canadians have recently borrowed money to cover their daily expenses.

The Financial and Consumer Agency of Canada, in its November 2022 report, said that as of September 2022, 38% of Canadians owe money to cover daily expenses such as groceries and rent. I’m here.

It also states that “the percentage of Canadians who used an online lender or payday loan more than tripled between August 2020 and September 2022.”