Canadians are feeling the sting of rising prices, especially lower income Canadians. A new report highlights how inflation is affecting the Canadian economy and families.
Inflation began picking up in early 2021. By mid-2022, consumer inflation had accelerated to its fastest pace in four decades, peaking at 8.1% in June. The headline inflation rate eased in late 2022 as gasoline prices fell. However, key sources of inflationary pressure such as food and shelter show little signs of moderating.
As inflation ramped up in 2022, Canadians reported that they were most impacted by rising food prices, followed by higher transportation and housing costs.
In April 2022, nearly 3 in 4 Canadians reported that rising prices were affecting their ability to meet day-to-day expenses, while 3 in 10 Canadians were very concerned about whether they could afford housing or rent.
By fall 2022, almost half (44%) said they were very concerned with their household’s ability to afford housing or rent, while one in four Canadians said they were unable to cover an unexpected expense of $500.
One reason why Canadians are struggling is that wages and earnings have not kept pace with price pressures, especially those related to food and shelter.
In the third quarter of 2022, net saving among the bottom 40% of income earners was below pre-COVID-19 pandemic levels, while younger households increased their debt leverage to fund consumption.
Consumer inflation in Canada is less pronounced than in most other G7 countries, including the United States.
The Research to Insights presentation “Consumer price inflation, recent trends and analysis” is now available.
For more information, contact the Statistical Information Service (toll-free 1-800-263-1136; 514-283-8300; firstname.lastname@example.org) or Media Relations (email@example.com).