Canadian inflation recently hit the highest that we had seen in 18 years, and this means that prices are going up around the country for everyday goods that Canadians buy. The cost of living increases when the price of those goods climbs and the Bank of Canada has also warned that inflation is expected to persist well into 2022.
Interest rates might move higher sooner than expected according to one former central banker. Overall the inflation that Canadians are seeing hasn’t been this bad since back in 2003. As well, the last time rates were raised by the central bank was in 2018.
Financial experts have insisted that it is their job to make sure the price increases globally don’t result in ongoing inflation.
The rise in prices for goods and everyday living is placing more stress on Canadians who indicated during the recent election that the cost of living in Canada was one of the top priorities for many. Families are concerned with affordability and the potential for things to get worse.
Food banks in Vancouver and around the country are also bracing themselves for an increase in demand, as they have been struggling to deal with throughout the pandemic as more families turned to get help.
Struggling With Rising Cost of Food and Living in Canada
There are millions of Canadians who struggle to get by and afford the basic necessities that they require. The higher food prices are going to contribute to a more expensive holiday season this year for families around the country. Some might have already had to turn to making other decisions in opting out of what they can no longer afford, or looking to buy in bulk, use coupons, or find deals wherever they can.
One study found that already there are 2 in 5 Canadians who have changed their habits to try and save money on food purchases.
Food banks in Canada saw about a 20% increase in visits throughout the pandemic, they were already pushed to the limit and struggling to keep up with the demand that they have been seeing. With inflation getting worse and prices rising that will only push more individuals to look to get help from those community resources. The problem of affordability in Canada has contributed to growing calls for an overhaul of the social safety net in an effort to try and address that poverty and reduce the need around the country.