Inflation in Canada has been soaring to new levels, recently hitting the highest level of inflation seen since back in 1991. This means Canada is seeing a 30 year high inflation.
Canadians are already feeling the rising prices at the grocery stores and at gas pumps, in other places around the market. The cost of living is rising along with those prices.
Another area that has also faced criticism for its dramatic rise in prices is real estate, which continues to price millions of Canadians out of the dream of owning a home one day.
Some cities in Canada are among the most expensive places to live in the world, like Vancouver and Toronto. This means that those middle class and lower income families and individuals are continually priced out of the area.
Already, we’ve heard stories about British Columbians looking to move to other parts of the country to try and find a more affordable lifestyle. Inflation and cost of living are a big issue for many Canadians.
In the most recent election it was seen that cost of living was just as important for many, if not more so, than the pandemic itself as an issue of concern. People want to know if, how, and when, things are going to get better on the front of affordability in Canada.
Changing Habits to Save Money
Some Canadians are already changing their shopping habits to try and save some money where they can. You can even find some Facebook groups where they are also sharing tips with one another and information about seeing price increases on different items.
With that inflation increasing to new highs that haven’t been seen in years it means the cost of living is going up dramatically for millions around Canada.
Meat prices have been growing faster than inflation as well, with bacon seeming to lead the pack on the price rise.
The inflation increasing places a great deal more pressure on social community resources that are there to fill that gap and meet the need of those who are food insecure around the nation.
Bank of Canada holds rates steady for now
The Bank of Canada has suggested that the risks surrounding inflation are reasonably balanced, but that a rising path for interest rates would be required for bringing inflation back to target. But when might they start to make that move to increase? It isn’t happening now as they’ve just announced they are keeping it unchanged as of last week.
Still, this doesn’t mean an increase isn’t off the table they’ve warned going forward.
There are a wide number of Canadians who are food insecure and who do rely on those social community resources to help to fill the void that there is.
For those who are on a fixed income, as well as other lower income families and individuals, experts have warned that it is especially difficult for them to tackle that rising cost of living.
The problem of inflation has already prompted a number of people to ask the question of whether or not the inflation can be stopped, or if things might get worse before they get better etc. These are questions that Canadians are waiting to have answered from those who have been tasked with attempting to control and monitor inflation in the country.
One Ipsos poll found that about 80% of Canadians are concerned with inflation and think it will worsen the cost of living.
As Canadians continue to struggle with affording a place to live and being able to put food in the fridge this will continue to remain an important issue with many Canadians who are looking for things to get better affordability wise around the country.
The same poll found that about 24% of Canadians wouldn’t be able to absorb a rapid increase in the cost of living, they are already being stretched thin. A number of Canadians around BC and other parts of Canada are already spending much more than 30% of their income on shelter alone.