Cost of Living Inflation

Canada’s affordability crunch is still squeezing household budgets. Inflation may have eased to 2.2% in November, but grocery prices rose 4.7%—more than twice the headline rate.

And in poll after poll, food and shelter sit at the top of Canadians’ economic worries. It tracks: since 2021, groceries and rent are up roughly 30%, while average wages have risen about 20%. In other words, essentials are climbing about 50% faster than paycheques.

Prime Minister Carney’s plan to catalyze $1 trillion in economic activity aims to shore up the economy amid a trade war—but turning that growth into real relief for regular people will take an additional strategy.