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This study uses the 2022 Portrait of Canadian Society Survey to examine the impact of rising inflation on the lowest income Canadians. Using multiple pre-pandemic data sources, the study takes a closer look at people living in the bottom family income quintile, examining their family income, debt and assets levels, as well as some indicators of economic hardship.
The Consumer Price Index (CPI) rose 6.8% on an annual average basis in 2022, following gains of 3.4% in 2021 and of 0.7% in 2020. The increase in 2022 was a 40-year high, the largest increase since 1982 (+10.9%). Excluding energy, the annual average CPI rose 5.7% in 2022 compared with 2.4% in 2021. Price increases were broad-based in 2022, with prices up on an annual average basis in all eight major components. Canadians felt the impact of inflation, as prices for day-to-day basics such as transportation (+10.6%), food (+8.9%) and shelter (+6.9%) rose the most. Both goods and services prices rose at a faster pace compared with a year earlier. Prices for goods were up 8.7% on an annual average basis in 2022, led by higher prices for non-durable goods such as food purchased from stores (+9.8%) and gasoline (+28.5%). Prices for services increased 5.0% in 2022, led by homeowners' replacement cost (+9.5%) and other owned accommodation expenses (+10.0%). Year-over-year price growth accelerated each month in the first half of the year, reaching a high of 8.1% in June, and slowed in the second half of the year.
Managing your finances means finding the right balance. Inflation and higher interest rates signal that you may need to adjust your budget to find the right balance between daily spending and paying down debt. The right balance will depend on your financial situation and goals. This selection of tools from the FCAC provides information and tips on: How to manage your money when interest rates rise Make a plan to pay off your debt
Using data provided by provincial and territorial government sources, Welfare in Canada, 2021 describes the components of welfare incomes, how they have changed from previous years, and how they compared to low-income thresholds. Access the report here. During the launch event, the report’s authors, Jennefer Laidley and Mohy Tabbara, broke down the latest welfare income data from all 13 provinces and territories and presented the key takeaways. Recorded on November 24, the Welfare in Canada, 2021 launch event started with a brief presentation of the report’s key findings, followed by a panel discussion. Presenters: Moderator:
When inflation rates go up, it can be tempting to look for ways to grow your money at rates higher than the rate of inflation. Investing can feel more appealing than the average savings account. While it’s important to stay the course on your investing goals, don’t neglect your savings. There are many reasons why a savings account is still worth tending to, even during tough times. If you’re making ends meet and still have extra to put aside, keep these tips in mind.
A good deal of attention has been paid to the question of what these high rates of inflation in housing and food costs mean for Canadians. Much of the concern has focused on the implications for middle-income Canadians hoping to purchase a home, while squeezing their household budgets. But what do these rates of inflation mean for Canadians with very low income? For them, high rates of inflation in the price of food and shelter mean more than having to delay thoughts of homeownership. For them, the threats are considerably more serious.
The Standard & Poor's Ratings Services Global Financial Literacy Survey is the world’s largest, most comprehensive global measurement of financial literacy. It probes knowledge of four basic financial concepts: risk diversification, inflation, numeracy, and interest compounding. The survey is based on interviews with more than 150,000 adults in over 140 countries. In 2014 McGraw Hill Financial worked with Gallup, Inc., the World Bank Development Research Group, and GFLEC on the S&P Global FinLit Survey.
The key takeaways from the 2022 Canadian Retirement Survey are: Read the full presentation conducted for Healthcare of Ontario Pension Plan.
This article from OSC provides 8 tips to help you plan for retirement. Transitioning from working life to retirement takes careful financial planning and decision-making – give yourself plenty of time to prepare. Here are some things you can do ahead of time.