Canada’s inflation rate has increased to a new 30 year high of around 4.8% and this means that prices are increasing at a rapid pace in the nation. Canadians are feeling the pinch as prices rise for the cost of living and Canadians spend hundreds more this year on what they need to get by.
For many Canadians in Vancouver and elsewhere around the country you find that they are already spending between 30-50 per cent of their income on shelter and other neccessary expenses alone. The increase in inflation means that more families are going to struggle with food insecurity and with being comfortable in daily life affording what they need.
Prices on food in a variety of places have increased more than 4.8% inflation as well. For apples they have seen a surge in price of more than 6.7 per cent from last year, and about the same for oranges at 6.6 per cent.
Canadians were already told that we should expect to see prices rise between 5 to 7 per cent this year according to previous reports on this issue, like the Canada Food Price Report.
Majority of Canadians Expected To Change Buying Habits
Thanks to the increase in prices and affordability there are many Canadians that are already looking to cut costs where they can, which might mean buying off brand or using coupons. It might also mean trying to buy in bulk and looking for more discounts.
One report suggested that the average Canadian family might be spending almost $1000 more this year on food than they did last year (around $966).
Canada isn’t the only one who is dealing with inflation and experts have pointed to a variety of issues that might be fueling that problem, from supply chain disruption to inflation and changing demands. Inflation is a growing issue today not just in Canada and many are concerned with what that inflation might mean in the future for the cost of living.
Canadians are already dealing with an incredibly painful real estate situation that has been worsening for years and for those in regions like Toronto and Vancouver they are living in some of the most expensive places in the world.
Some suspect that we might see an early rate hike come about due to those concerns with rising inflation in Canada. The inflation they’ve been seeing has already topped the Bank of Canada’s control range for several months in a row now.
Daily life getting more expensive for Canadians is going to be a struggle for many and effectively lowers the standard of living by making it more costly to get by, and for families to afford what they need. And the inflation that we are seeing with the recent consumer price index doesn’t account for the increase we have seen in house prices in the country either, which is even worse with prices rising the fastest on record for housing seeing around 26 per cent at the end of last year.