Research to Insights: Consumer price inflation, recent trends and analysis

About Research to Insights

The Research to Insights series of presentations features a broad range of findings on selected research topics. Each presentation draws from and integrates evidence from various studies that use innovative and high-quality data and methods to better understand relevant and complex policy issues.

Based on applied research of valuable data, the series is intended to provide decision makers, and Canadians more broadly, a comprehensive and horizontal view of the current economic, social and health issues we face in a changing world.

Context

• Since early 2021, higher prices for gasoline, shelter, food and consumer durables have put upward pressure on consumer inflation. Supply disruptions coupled with strong household demand have fuelled price growth.
• By mid-2022, consumer inflation had accelerated to its fastest pace in four decades, peaking at 8.1% in June. While the headline rate eased in late 2022 as gasoline prices fell, key sources of inflationary pressure, including food and shelter, showed little signs of moderating.
• The pace of inflation has not been uniform across all provinces, but overall trends have been similar. In 2022, Prince Edward Island and Manitoba posted the largest annual increases in average prices.
• As inflation ramped up in 2022, Canadians reported that they were most impacted by rising food prices, followed by higher costs for transportation and housing.
• Wages and earnings have not kept pace with price pressures, especially those related to food and shelter. In the third quarter of 2022, net saving among the bottom 40% of income earners was below levels recorded at the start of the COVID-19 pandemic, while younger households increased their debt leverage to fund consumption.

Inflationary pressures built up steadily in 2021 and 2022

• December 2022 marked the 21st consecutive month that the headline rate had been above 3% and the 10th consecutive month above 6%.
• Overall consumer prices have risen by 11.4% during the past two years. Excluding gasoline, prices have increased by 10.5%.

Data table for Chart 1



Consumer price index
Table summary
This table displays the results of Consumer price index All-items and All-items excluding gasoline, calculated using percent units of measure (appearing as column headers).

	All-items	All-items excluding gasoline
	percent
2018
January	131.7	130.1
February	132.5	130.9
March	132.9	131.2
April	133.3	131.2
May	133.4	131.2
June	133.6	131.5
July	134.3	132.2
August	134.2	132.2
September	133.7	131.7
October	134.1	132.3
November	133.5	132.2
December	133.4	132.5
2019
January	133.6	132.8
February	134.5	133.6
March	135.4	134.1
April	136.0	134.2
May	136.6	134.8
June	136.3	134.9
July	137.0	135.4
August	136.8	135.4
September	136.2	134.8
October	136.6	135.3
November	136.4	135.2
December	136.4	135.2
2020
January	136.8	135.5
February	137.4	136.3
March	136.6	136.3
April	135.7	136.0
May	136.1	135.8
June	137.2	136.5
July	137.2	136.4
August	137.0	136.2
September	136.9	136.1
October	137.5	136.7
November	137.7	137.0
December	137.4	136.6
2021
January	138.2	137.2
February	138.9	137.6
March	139.6	138.0
April	140.3	138.6
May	141.0	139.2
June	141.4	139.5
July	142.3	140.2
August	142.6	140.6
September	142.9	140.9
October	143.9	141.6
November	144.2	141.9
December	144.0	142.0
2022
January	145.3	143.1
February	146.8	144.1
March	148.9	145.6
April	149.8	146.6
May	151.9	148.0
June	152.9	148.5
July	153.1	149.4
August	152.6	149.5
September	152.7	150.1
October	153.8	150.8
November	154.0	151.2
December	153.1	151.0
Notes: January 2020 Headline consumer inflation: 2.4% Annual price growth, excluding gasoline: 2.0%. May 2020 Headline consumer inflation: -0.4% Annual price growth, excluding gasoline: 0.7%. December 2022 Headline consumer inflation: 6.3% Annual price growth, excluding gasoline: 6.3% Source: Statistics Canada, table 18-10-0004-01.

Consumer inflation in Canada less pronounced than in several G7 countries, including the United States

• In 2021, inflation in the United States rose at a faster pace than in Canada in part because of much larger increases in used vehicle prices south of the border, which account for a larger share of consumer outlays in the United States.
• Price growth in both countries was similar in 2022, with inflationary pressures easing at mid-year as gasoline prices declined.

Data table for Chart 2



G7 inflation rates, all items
Table summary
This table displays the results of G7 inflation rates December 2021 and December 2022, calculated using year-over-year percent change units of measure (appearing as column headers).

	December 2021	December 2022
	year-over-year percent change
Italy	3.9	11.6
United Kingdom	4.8	9.2
Germany	5.3	8.6
United States of America	7.0	6.5
Canada	4.8	6.3
France	2.8	5.9
Japan	0.8	4.0
Source: Organization for Economic Cooperation and Development.

Inflationary pressure became increasingly broad based in 2021 and 2022

How much of consumer spending has been gradually impacted by high inflation?

• Over the course of 2021, the share of spending on products and services that had seen prices rise by more than 3% during the previous 12 months rose considerably. This share increased from about 20% in January 2021 to almost 60% by December of that year.
• When inflation peaked in June 2022, the share of spending on products that had seen yearly price increases of more than 6% now accounted for one-half of the expenditure weight.

Data table for Chart 3



Consumer Price Index basket by magnitude of year-over-year increase, Canada, January 2021 to December 2022
Table summary
This table displays the results of Consumer Price Index basket by magnitude of year-over-year increase 3.0% or less, 3.1% to 6.0%, 6.1% to 10.0% and Greater than 10%, calculated using percent of basket weight units of measure (appearing as column headers).

	3.0% or less	3.1% to 6.0%	6.1% to 10.0%	Greater than 10%
	percent of basket weight
2021
January	79.1	16.93	2.14	1.74
February	74.13	16.86	8.61	0.31
March	64.84	21.93	8.12	5.02
April	63.47	18.49	13.56	4.39
May	56.85	24.67	7.83	10.56
June	57.11	19.89	6.08	16.93
July	53.37	24.85	4.39	17.4
August	46.54	23.36	11.88	18.23
September	50.28	18.54	13.33	17.86
October	46.24	23.97	12.48	17.32
November	43.03	26.52	13.28	17.18
December	41.18	23.28	17.76	17.79
2022
January	32.48	35.4	13.29	18.84
February	31.31	33.99	13.98	20.73
March	33.11	25.41	19.5	21.99
April	28.63	23.62	24	23.76
May	23.99	26.42	21.94	27.57
June	22.55	26.56	31.95	18.86
July	23.4	26.53	34.01	15.98
August	19.07	29.36	35.73	15.76
September	18.41	30.78	31.91	18.82
October	14.56	32.06	34.92	18.38
November	16.4	35	29.95	18.57
December	26.11	30.86	27.79	15.16
Source: Statistics Canada, Consumer Price Index, special tabulations.

Rising food prices and housing costs are key stressors for Canadian families

• In April 2022, nearly three in four Canadians reported that rising prices were affecting their ability to meet day-to-day expenses.
• Three in ten Canadians were very concerned about whether they could afford housing or rent.
• By the fall of 2022, almost half (44%) said they were very concerned with their household’s ability to afford housing or rent.
• One in four Canadians said they were unable to cover an unexpected expense of $500.
• Young adults were among those most concerned over finances, with almost half of people aged 35-44 years saying they found it difficult to meet their financial needs in the previous 12 months.

Data table for Chart 4



Areas most affected by rising prices
Table summary
This table displays the results of Areas most affected by rising prices percent of respondents (appearing as column headers).

	percent of respondents
Transportation (including gasoline)	0.32
Housing	0.09
Household operations	0.08
Recreation	0.05
Education	0.02
Food	0.43
Sources: Statistics Canada, “Rising prices are affecting the ability to meet day-to-day expenses for most Canadians,” The Daily, June 2022, and Portrait of Canadian Society – Impacts of Rising Prices, April 19 to May 1, 2022.

For more information: The Daily — One in four Canadians are unable to cover an unexpected expense of $500 (statcan.gc.ca)

While gasoline prices eased during the second half of 2022, price pressures on food and housing continued to put severe strain on living costs

• In late 2022, prices for many products and services that directly impact living costs remained elevated. Food prices continued to edge higher and, measured year-over-year, remained in double-digit territory from September to December.
• Shelter costs also continued to rise steadily as higher mortgage interest costs offset recent declines in homeowners’ replacement costs (which reflect prices for new homes).
• Prices for rental accommodation rose in 19 of the past 24 months as the demand for rental units ramped up. 

Data table for Chart 5



Inflation by selected component, gasoline
Table summary
This table displays the results of Inflation by selected component CPI all-items and Gasoline (RHS), calculated using year-over-year percent change units of measure (appearing as column headers).

	CPI all-items	Gasoline (RHS)
	year-over-year percent change
2018
January	1.7	7.8
February	2.2	12.6
March	2.3	17.1
April	2.2	14.2
May	2.2	22.9
June	2.5	24.6
July	3.0	25.4
August	2.8	19.9
September	2.2	12.0
October	2.4	12.0
November	1.7	-5.4
December	2.0	-8.6
2019
January	1.4	-14.2
February	1.5	-11.9
March	1.9	-4.4
April	2.0	-1.6
May	2.4	-3.7
June	2.0	-9.2
July	2.0	-6.9
August	1.9	-10.2
September	1.9	-10.0
October	1.9	-6.7
November	2.2	0.9
December	2.2	7.4
2020
January	2.4	11.2
February	2.2	7.0
March	0.9	-21.2
April	-0.2	-39.3
May	-0.4	-29.8
June	0.7	-15.7
July	0.1	-14.9
August	0.1	-11.1
September	0.5	-10.7
October	0.7	-12.4
November	1.0	-11.9
December	0.7	-8.5
2021
January	1.0	-3.3
February	1.1	5.0
March	2.2	35.3
April	3.4	62.5
May	3.6	43.4
June	3.1	32.0
July	3.7	30.9
August	4.1	32.5
September	4.4	32.8
October	4.7	41.7
November	4.7	43.6
December	4.8	33.3
2022
January	5.1	31.7
February	5.7	32.3
March	6.7	39.8
April	6.8	36.3
May	7.7	48.0
June	8.1	54.6
July	7.6	35.6
August	7.0	22.1
September	6.9	13.2
October	6.9	17.8
November	6.8	13.7
December	6.3	3.0
Note: CPI refers to Consumer Price Index and RHS refers to right-hand side axis. Source: Statistics Canada table 18-10-0004-01.

Data table for Chart 6



Inflation by selected component, food
Table summary
This table displays the results of Inflation by selected component CPI all-items and Food, calculated using year-over-year percent change units of measure (appearing as column headers).

	CPI all-items	Food
	year-over-year percent change
2018
January	1.7	2.3
February	2.2	2.1
March	2.3	1.7
April	2.2	1.8
May	2.2	1.0
June	2.5	1.4
July	3.0	1.4
August	2.8	1.6
September	2.2	1.8
October	2.4	2.0
November	1.7	2.2
December	2.0	2.9
2019
January	1.4	2.8
February	1.5	3.2
March	1.9	3.6
April	2.0	2.9
May	2.4	3.5
June	2.0	3.5
July	2.0	3.8
August	1.9	3.6
September	1.9	3.7
October	1.9	3.7
November	2.2	3.4
December	2.2	3.0
2020
January	2.4	3.2
February	2.2	2.4
March	0.9	2.3
April	-0.2	3.4
May	-0.4	3.1
June	0.7	2.7
July	0.1	2.2
August	0.1	1.8
September	0.5	1.6
October	0.7	2.3
November	1.0	1.9
December	0.7	1.1
2021
January	1.0	1.0
February	1.1	1.8
March	2.2	1.8
April	3.4	0.9
May	3.6	1.5
June	3.1	1.3
July	3.7	1.7
August	4.1	2.7
September	4.4	3.9
October	4.7	3.8
November	4.7	4.4
December	4.8	5.2
2022
January	5.1	5.7
February	5.7	6.7
March	6.7	7.7
April	6.8	8.8
May	7.7	8.8
June	8.1	8.8
July	7.6	9.2
August	7.0	9.8
September	6.9	10.3
October	6.9	10.1
November	6.8	10.3
December	6.3	10.1
Note: CPI refers to Consumer Price Index. Source: Statistics Canada table 18-10-0004-01.

Data table for Chart 7



Inflation by selected component, shelter and household operations
Table summary
This table displays the results of Inflation by selected component CPI all-items, Shelter and Household operations, calculated using year-over-year percent change units of measure (appearing as column headers).

	CPI all-items	Shelter	Household operations
	year-over-year percent change
2018
January	1.7	1.4	1.3
February	2.2	1.7	2.3
March	2.3	1.7	1.9
April	2.2	1.7	1.9
May	2.2	2.0	0.6
June	2.5	2.0	0.0
July	3.0	2.4	1.0
August	2.8	2.3	1.3
September	2.2	2.5	1.9
October	2.4	2.5	1.7
November	1.7	2.4	1.6
December	2.0	2.2	3.6
2019
January	1.4	2.4	1.7
February	1.5	2.4	0.4
March	1.9	2.7	0.7
April	2.0	2.7	-0.1
May	2.4	2.7	1.2
June	2.0	2.5	1.8
July	2.0	2.3	0.7
August	1.9	2.4	0.9
September	1.9	2.3	0.5
October	1.9	2.6	-0.1
November	2.2	2.5	-0.3
December	2.2	2.8	-0.6
2020
January	2.4	2.4	-0.8
February	2.2	2.3	0.0
March	0.9	1.9	0.3
April	-0.2	1.3	0.3
May	-0.4	1.0	-0.2
June	0.7	1.7	-0.4
July	0.1	1.5	0.1
August	0.1	1.5	-0.2
September	0.5	1.7	-0.4
October	0.7	1.8	-0.4
November	1.0	1.9	-0.5
December	0.7	1.6	-0.7
2021
January	1.0	1.4	0.3
February	1.1	1.4	-0.8
March	2.2	2.4	-2.2
April	3.4	3.2	-1.1
May	3.6	4.2	-0.7
June	3.1	4.4	-0.9
July	3.7	4.8	-0.3
August	4.1	4.8	-0.1
September	4.4	4.8	0.4
October	4.7	4.8	0.9
November	4.7	4.8	0.2
December	4.8	5.4	0.7
2022
January	5.1	6.2	0.7
February	5.7	6.6	1.5
March	6.7	6.8	2.7
April	6.8	7.4	2.0
May	7.7	7.4	2.9
June	8.1	7.1	3.1
July	7.6	7.0	2.7
August	7.0	6.6	3.0
September	6.9	6.8	3.3
October	6.9	6.9	3.2
November	6.8	7.2	3.8
December	6.3	7.0	3.7
Note: CPI refers to Consumer Price Index. Source: Statistics Canada table 18-10-0004-01.

Canadian food prices are growing at their fastest pace in 40 years

• Many factors are contributing to food inflation, including supply chain disruptions, erratic weather, labour shortages and wage pressures, rising prices for farm inputs, higher import and transport costs, and geopolitical events such as the war in Ukraine.
• Unlike past trends, many of these pressures have been occurring simultaneously or in a more pronounced manner, leading to broad based increases in food prices not only domestically, but globally.

Description for Chart 8

Chart 8 shows line graphs for food prices and the consumer price index (CPI) excluding food prices. There are two lines. The graphs show the year over year percentage change in the price of food on a monthly basis and the year over year percentage change in consumer prices excluding food on a monthly basis. There are also numbers at various points throughout the graph to signify peak food prices at various times. The y-axis shows the percentage change in prices, from a minimum of -8.0% to a maximum of 22.0%. The x-axis of the graph is months starting with January 1950 and ending with December 2022.

The data is available in CSV format

Food inflation has become increasingly broad based as supply chain issues, labour shortages, transportation costs, weather events and geopolitical developments put upward pressure on food prices

• For context, food prices rose a cumulative 9.2% from 2015 to 2019, while they increased 14.8% between January 2021 and December 2022.

Data table for Chart 9



Food price gains
Table summary
This table displays the results of Food price gains 2015 to 2019 and 2021 to present, calculated using cumulative increase, percent units of measure (appearing as column headers).

	2015 to 2019	2021 to present
	cumulative increase, percent
Food	9.2	14.8
Meat	7.9	14.3
Seafood	16.5	12.6
Dairy and eggs	1.7	15.4
Bakery and cereals	3.4	22.1
Fresh fruit	10.4	14.8
Vegetables	17.1	14.2
Other food products	3.0	17.5
Source: Statistics Canada table 18-10-0004-01.

• The second half of 2022 witnessed a sharp rise in the share of food spending in double-digit territory, with little relief as headline inflation eased late in the year. At year-end, food items with yearly price increases of more than 10% accounted for two-thirds of food expenditures.

Data table for Chart 10



Consumer Price Index food basket by magnitude of year-over-year increase, Canada, January 2021 to December 2022
Table summary
This table displays the results of Consumer Price Index food basket by magnitude of year-over-year increase 3.0% or less, 3.1% to 6.0%, 6.1% to 10% and Greater than 10%, calculated using percentage of basket weight units of measure (appearing as column headers).

	3.0% or less	3.1% to 6.0%	6.1% to 10%	Greater than 10%
	percentage of basket weight
2021
January	93.9	3.5	1.7	0.9
February	75.5	17.6	6.0	0.9
March	75.2	18.5	0.0	6.3
April	89.4	0.4	10.3	0.0
May	76.7	13.2	10.1	0.0
June	62.0	17.6	15.4	5.1
July	67.5	24.2	6.4	1.9
August	52.5	25.3	18.4	3.8
September	44.3	26.9	16.8	12.0
October	32.9	41.6	18.0	7.5
November	30.7	36.4	24.4	8.5
December	19.5	29.8	41.4	9.3
2022
January	9.3	32.8	39.0	18.8
February	4.3	27.0	49.4	19.3
March	6.7	7.0	53.6	32.7
April	2.7	12.8	46.4	38.1
May	1.5	11.2	40.1	47.2
June	2.5	16.0	49.0	32.4
July	4.8	9.0	46.1	40.1
August	4.6	8.6	27.2	59.6
September	4.4	5.6	24.0	66.0
October	6.6	9.1	35.1	49.1
November	6.5	9.7	23.5	60.3
December	4.6	11.4	16.5	67.6
Note: Data are limited to food products purchased from stores. Sources: Statistics Canada tables 18-10-0004 and 18-10-0007-01.

Rising fuel prices have had an impact on families, in terms of travel budgets, and producers, in terms of shipping costs

• Since January 2021, private transportation costs have increased by 12.6%, largely because of the growing cost of operating a passenger vehicle (+13.4%), while rail freight transportation costs have increased by 23.8%.
• The cost of public transportation has increased by 25.8%, largely because of the increase in intercity transportation costs (+47.4%). The latter has been driven mainly by air transportation.

Data table for Chart 11



Public and private transportation costs
Table summary
This table displays the results of Public and private transportation costs Private transportation and Public transportation, calculated using Index (January 2018=100) units of measure (appearing as column headers).

	Private transportation	Public transportation
	Index (January 2018=100)
2018
January	100.0	100.0
February	100.4	99.8
March	100.4	101.6
April	101.8	99.8
May	102.1	99.8
June	102.4	103.1
July	102.1	114.6
August	101.7	113.0
September	101.0	100.0
October	101.3	103.1
November	99.7	101.5
December	98.7	115.8
2019
January	99.0	103.6
February	100.1	103.3
March	102.1	104.2
April	103.9	104.9
May	104.6	106.5
June	103.3	108.6
July	103.3	118.9
August	102.4	121.4
September	101.8	105.1
October	102.4	106.8
November	102.7	105.5
December	102.2	121.0
2020
January	103.7	110.5
February	104.0	111.7
March	100.1	109.4
April	98.1	111.7
May	100.5	112.2
June	102.6	115.4
July	102.9	112.8
August	102.3	109.1
September	102.0	103.9
October	102.6	103.7
November	102.6	105.1
December	102.8	109.9
2021
January	105.3	106.8
February	107.1	107.0
March	108.0	111.6
April	108.2	113.7
May	109.2	111.2
June	109.7	108.4
July	110.9	106.5
August	111.2	125.3
September	111.2	115.0
October	113.0	111.6
November	113.1	109.9
December	112.1	123.1
2022
January	114.2	111.6
February	116.6	109.8
March	120.6	114.1
April	121.1	116.7
May	125.7	116.2
June	128.5	119.7
July	126.1	135.2
August	122.6	136.3
September	120.7	127.0
October	123.7	123.6
November	122.6	123.0
December	118.6	134.4
Source: Statistics Canada table 18-10-0004-01.

• Since January 2021, trucking transportation costs have risen 30.9%, while rail freight transportation costs have increased by 23.8%.

Data table for Chart 12



Trucking and rail transportation costs
Table summary
This table displays the results of Trucking and rail transportation costs Freight Rail Services Price Index and General freight trucking, calculated using Index (January 2018=100) units of measure (appearing as column headers).

	Freight Rail Services Price Index	General freight trucking
	Index (January 2018=100)
2018
January	100.0	100.0
February	100.7	100.7
March	102.0	101.6
April	101.5	102.7
May	102.0	104.0
June	106.6	105.6
July	107.8	105.7
August	107.4	105.7
September	107.8	106.1
October	108.1	107.1
November	109.4	107.3
December	109.9	107.3
2019
January	110.0	106.7
February	108.8	107.1
March	109.2	108.3
April	109.5	108.8
May	110.0	109.4
June	110.1	108.9
July	110.0	108.5
August	110.6	109.2
September	110.4	109.3
October	111.1	108.4
November	111.6	109.0
December	111.4	109.2
2020
January	111.2	109.8
February	112.6	109.5
March	114.2	108.7
April	114.7	106.4
May	113.7	105.5
June	110.8	105.4
July	111.1	105.3
August	110.1	105.3
September	109.7	106.6
October	110.7	105.8
November	110.1	105.8
December	109.2	106.3
2021
January	109.8	108.2
February	110.7	108.6
March	110.7	109.5
April	111.6	110.5
May	110.8	110.5
June	110.9	111.4
July	112.8	112.2
August	113.7	113.5
September	114.6	113.7
October	115.6	115.7
November	116.7	117.8
December	118.7	118.8
2022
January	119.6	121.8
February	119.9	125.8
March	121.9	132.7
April	122.9	139.3
May	129.2	144.5
June	129.5	145.5
July	132.8	144.8
August	132.5	140.7
September	132.5	141.6
October	133.7	Note ...: not applicable
November	134.8	Note ...: not applicable
December	135.9	Note ...: not applicable
... not applicable Sources: Statistics Canada tables 18-10-0212-01 and 18-10-0043-01.

The costs of owning or renting a home are rising at the fastest pace in over 30 years

• Higher mortgage interest costs, which rose 18% in the 12 months to December 2022, put strong upward pressure on headline inflation in late 2022.
• Housing affordability deteriorated markedly during the second and third quarters of 2022 as borrowing costs rose.
• Yearly price increases for rental accommodation, which reflect both older and more recent rental contracts, were 5.9% in December 2022.
• The costs of utilities have grown, largely because of rising household fuel and natural gas prices.

Data table for Chart 13



Shelter costs
Table summary
This table displays the results of Shelter costs Shelter, Rented accommodation, Owned accommodation and Water, fuel and electricity, calculated using Index (January 2018=100) units of measure (appearing as column headers).

	Shelter	Rented accommodation	Owned accommodation	Water, fuel and electricity
	Index (January 2018=100)
2018
January	100.0	100.0	100.0	100.0
February	100.2	100.2	100.2	100.3
March	100.2	100.2	100.3	99.7
April	100.4	100.3	100.5	100.1
May	100.5	100.5	100.7	99.4
June	100.6	100.6	100.9	99.3
July	100.9	100.7	101.1	100.3
August	101.1	100.8	101.4	100.1
September	101.3	101.0	101.6	100.2
October	101.6	101.1	102.1	100.5
November	101.9	101.2	102.3	100.8
December	101.9	101.2	102.5	100.3
2019
January	102.4	102.2	102.7	101.2
February	102.6	102.6	102.9	101.5
March	102.9	103.0	103.1	102.2
April	103.1	102.6	103.3	103.4
May	103.2	102.7	103.4	103.4
June	103.1	102.9	103.5	101.6
July	103.3	103.2	103.6	101.9
August	103.5	103.9	103.7	102.2
September	103.7	104.0	103.9	102.2
October	104.3	104.7	104.6	102.1
November	104.4	104.4	104.8	103.1
December	104.7	104.7	104.9	103.7
2020
January	104.8	104.6	105.0	103.9
February	105.0	105.4	105.1	103.5
March	104.9	105.6	105.5	101.2
April	104.5	104.9	105.8	98.5
May	104.2	104.1	105.7	98.1
June	104.8	104.7	105.7	100.9
July	104.8	104.4	105.7	101.5
August	105.1	105.3	105.8	101.7
September	105.4	105.6	106.1	102.5
October	106.2	105.8	106.9	103.3
November	106.4	105.9	107.1	104.1
December	106.4	105.3	107.2	104.7
2021
January	106.2	105.6	107.3	102.6
February	106.5	105.6	107.5	103.8
March	107.4	106.2	108.0	106.3
April	107.9	106.0	108.6	107.8
May	108.6	106.7	109.4	108.0
June	109.4	107.0	110.6	107.9
July	109.9	107.2	111.1	109.0
August	110.2	107.0	111.4	109.7
September	110.5	107.6	111.8	109.4
October	111.2	107.8	112.3	112.2
November	111.6	107.8	112.7	113.4
December	112.2	108.3	113.5	113.7
2022
January	112.8	109.0	113.8	114.9
February	113.5	110.0	114.2	116.6
March	114.7	110.7	115.5	117.9
April	115.9	110.9	116.9	120.4
May	116.7	111.5	117.3	123.4
June	117.1	111.7	118.0	123.2
July	117.5	112.5	118.1	124.8
August	117.5	112.3	118.3	123.2
September	118.0	112.4	119.1	123.4
October	119.0	112.9	119.9	125.6
November	119.7	114.2	120.3	127.3
December	120.1	114.7	120.9	126.6
Source: Statistics Canada table 18-10-0004-01.

Despite higher wages and earnings, most workers have seen their purchasing power decline as inflationary pressures ramp up 

• Average hourly wages, measured year-over-year, were up 5.1% December 2022, while average weekly earnings rose 4.2% in the 12 months to November.
• Higher-paid employees are more likely to have seen their wages keep pace with rising prices, including many in higher-paying sectors such as professional, scientific and technical services, and the finance, insurance and real estate industries.
• By contrast, the portion of workers receiving pay raises was relatively low in agriculture and accommodation and food services, industries with below-average wages.

Data table for Chart 14



Data table for chart 14
Table summary
This table displays the results of Data table for chart 14 Consumer Price Index and Average hourly wage rate, calculated using Index (January 2018=100) units of measure (appearing as column headers).

	Consumer Price Index	Average hourly wage rate
	Index (January 2018=100)
2018
January	100.0	100.0
February	100.6	100.2
March	100.9	100.3
April	101.2	100.3
May	101.3	99.9
June	101.4	99.7
July	102.0	99.1
August	101.9	99.1
September	101.5	100.7
October	101.8	101.1
November	101.4	101.2
December	101.3	101.5
2019
January	101.4	102.3
February	102.1	102.4
March	102.8	102.3
April	103.3	102.5
May	103.7	102.3
June	103.5	102.8
July	104.0	102.3
August	103.9	102.1
September	103.4	104.1
October	103.7	104.2
November	103.6	104.2
December	103.6	104.1
2020
January	103.9	105.2
February	104.3	105.8
March	103.7	108.7
April	103.0	113.2
May	103.3	112.6
June	104.2	110.1
July	104.2	108.9
August	104.0	108.6
September	103.9	109.3
October	104.4	110.0
November	104.6	109.5
December	104.3	109.7
2021
January	104.9	111.8
February	105.5	111.4
March	106.0	110.8
April	106.5	111.7
May	107.1	111.0
June	107.4	110.1
July	108.0	110.3
August	108.3	110.7
September	108.5	112.3
October	109.3	112.3
November	109.5	112.5
December	109.3	113.4
2022
January	110.3	114.9
February	111.5	114.4
March	113.1	114.3
April	113.7	115.3
May	115.3	115.1
June	116.1	115.6
July	116.2	115.1
August	115.9	116.0
September	115.9	117.7
October	116.8	118.3
November	116.9	118.9
December	116.2	118.8
Notes: Rising wages attributable to the changing composition of the workforce early in the COVID-19 pandemic. Annual wage growth: 4.8% and Headline consumer infaltion: 6.3%. Sources: Statistics Canada tables 14-10-0063-01 and 18-10-0004-01.

Inflationary pressures weigh on more vulnerable households as incomes and savings adjust

• For low-income households, expenditures on necessities as a share of disposable income fell early in the pandemic as government support measures bolstered income levels and many households began to pay down debt.
• Financial vulnerabilities have re-emerged as income supports wound down and cost pressures rose. Overall, expenditures and debt rose more than income and assets in the third quarter of 2022, suggesting that increases in the cost of living are having a negative impact on net saving and wealth, especially for more vulnerable households.
• Low- and middle-income households have seen large reductions in their net savings, while younger households have become more leveraged.

Data table for Chart 15



Food, housing and transport expenditures as a share of disposable income, by selected income quintile
Table summary
This table displays the results of Food Lowest quintile and Third quintile, calculated using percent units of measure (appearing as column headers).

	Lowest quintile	Third quintile
	percent
1999	86.3	54.1
2000	89.4	55.1
2001	81.6	55.0
2002	87.6	55.0
2003	85.8	55.3
2004	90.4	54.6
2005	98.4	56.0
2006	97.9	53.5
2007	95.5	55.2
2008	100.1	53.7
2009	94.3	52.5
2010	98.9	52.4
2011	96.9	53.2
2012	95.2	54.1
2013	101.0	53.6
2014	102.7	55.8
2015	105.9	53.3
2016	104.8	52.9
2017	107.7	53.6
2018	103.7	53.1
2019	104.6	53.4
2020	80.4	47.4
2021	86.1	48.8
2022 Q1	102.4	44.4
2022 Q2	117.2	48.7
2022 Q3	90.0	42.9
Notes: Ovals indicate a time period where expenditure on food, housing and transportation are greater than 100% of disposable income (2013-2019 & Q1-Q2 2022). 2022 data presented as quarterly values as year end 2022 data is not yet available. Sources: Statistics Canada tables 36-10-0587-01 and 36-10-0662-01.

Conclusion and key takeaways

• Inflationary pressures became increasingly widespread as the headline rate rose to a 40-year high, affecting a large portion of household outlays. 
• High inflation, especially for food products, has put a severe strain on living costs, especially among more vulnerable households as income and saving levels adjust to the withdrawal in pandemic-related supports.
• Despite moderate increases in wages and earnings, most workers have seen their purchasing power decline as inflationary pressures ramp up.