Cost of Living

The cost of essentials is going up faster than wages. Many Canadians are struggling with the cost-of-living. These indicators track whether Canadians can still afford a decent life.

The costs of essentials for Canadians has increased dramatically over the past five years, far outstripping wages. This magnified a trend that was already present for decades. Top line measures of inflation miss out on more than they reveal. Food and rent have gotten much more expensive. (Source: Statistics Canada (Inflation, Wages).

Food is getting more costly and becoming a significant financial concern for working Canadians. The price shocks coming out of the pandemic are now baked into the base price and grocery margins have compounded. Canadian grocery oligopolies extract profits that are out of line with global norms. (Source: Statistics Canada).

More Canadians are having a tough time affording food. In a country like Canada, this is a national shame. Wages in Canada should be high enough that someone working full-time can meet their basic needs, including food and shelter. At a time when corporate profits are surging and the wealthy are paying less in taxes, rising food insecurity is evidence of systemic and structural problems in Canada’s economy. (Source: PROOF).

Despite economic growth, high employment and rising salaries, incomes have not kept pace with the cost of living. In the past five years, the percentage of people who spend more than they earn has been rising. More than a quarter of Canadians are now spending more than they earn. (Source: The Financial Consumer Agency of Canada).