APEC estimates that higher prices cost the average Atlantic Canadian household $7,200 in 2022, compared with purchasing the same goods and services in 2019.
Inflation in Atlantic Canada peaked in June last year at 9.4%. The year-over-year inflation rate subsided in the last six months, ending the year at 6.8%. While the worst of the current high inflation may be behind us, inflation remains elevated and well above the Bank of Canada’s 2% target.
What is sometimes missed, however, in the excitement of seeing inflation subside, is the cumulative effect of higher prices over the last few years. APEC examined the cost of purchasing goods and services in 2022 with the same cost in 2019. For the average Atlantic household, the biggest contributors to the rise in spending due to inflation were gasoline ($1,200), food from stores ($1,000), and housing, either rent ($1,300) or owned ($800).
These higher costs will continue to weigh on consumer spending and as wage growth is lagging behind price increased, will also factor into wage negotiations this year.