Rising Inflation Is a Major Concern for Canadians, Impacting the Cost of Living And Leading to Calls for Government Action
Inflation in Canada has steadily increased over the past year, impacting the cost of living there. Rising inflation has had a steady growth, increasing every year to reach 6.8% in April 2022. Housing prices and essential commodities like food, gas, etc. are becoming more expensive. Increasing consumer demands and challenges to keep a free-flowing supply chain have been identified as some of the main reasons helping consumer inflation.
Recent Statistics revealed that the inflation in Canada is hovering around five per cent which is two per cent above the target rate. To understand and measure the impact, of how rising prices are addressing financial concerns and financial decisions of Canadians, Canadian Society surveyed from April 19 to May 1, 2022.
The report revealed that rising prices are affecting the affordability of Canadians and their ability to meet daily expenses like food, gas, transportation, clothing, and housing. Many Canadians are struggling to cope with this new reality. They are trying to adjust and manage their spending habits, considering factors like changing their rentals and delaying purchases. Their delayed purchase decision reflects inflation and lower income quintiles in Canada. More than two in five Canadians have been affected by rising food and gas prices. The food price in Canada rose by 9.7% during the past year (measured from April 2021 to April 2022). Therefore, they are to pay more for their staple foods. The price hike of fresh vegetables is (+8.2%), fruit (+10.0%), and meat (+10.1%). The rising shelter and transportation costs have worsened the situation.
This is a generic trend. However, there are little variations found in different provinces. Regionally, almost all Canadians are affected by inflation. People with lower income quintiles are badly affected by rising inflation in Canada. They are now highly concerned about their monthly bills getting higher each month.
