Canadians continue to financially struggle despite inflation slowing
Posted October 16, 2024 7:10 am.
The rate of inflation in Canada is easing, but it still doesn’t seem to be enough, as some people continue to struggle to make ends meet.
A new survey conducted by Ipsos for MNP, a national accounting firm, found people in B.C., compared to any other province, are turning to so-called bill-splitting strategies like sharing subscriptions, carpooling, and buying in bulk.
“More than one in five (20 per cent) are saving money by moving in with friends, partners, or family members, or seeking additional roommates or co-living spaces,” said MNP.
CLICK HERE TO LISTEN TO 1130 NEWSRADIO VANCOUVER LIVE!“What’s especially worrying is that British Columbians are among the most likely to report cutting back on food just to get by,” explained Linda Paul, a Lower Mainland-based licensed insolvency trustee with MNP.
On Tuesday, Canada’s inflation rate hit 1.6 per cent, the lowest since February 2021. The rate was also well below forecast, however, people tell CityNews everything is still expensive.
“It’s dropped a little bit, I’ll give them that, but it’s not where we’d like it to be,” one woman told CityNews.
“It is what it is. You got to live with it,” another man added.
Statistics Canada said lower gasoline prices were the main driver of the drop in the overall inflation rate for September as drivers paid less to fill up this year compared to last year. StatCan added that fuel prices in September fell 10.7 per cent compared to 2023. When excluding gasoline, the annual pace of inflation was 2.2 per cent last month.
That may seem like good news, but many drivers still say it’s painful at the pump.
“It’s still really pricey. Just to go back and forth, I travel a little bit far to go to work and oh, it’s bad,” said one driver.
Gas prices in B.C. are among the highest in Canada, due to taxes, amongst other factors.
Despite the rate of inflation coming down, day-to-day items are still expensive, including at the grocery store.
“Butter, milk, bread, cilantro — even that’s expensive,” exclaimed one shopper.
One man CityNews spoke to was carrying a couple of bags of groceries that weren’t even full.
“Average spend is about $50. You can see what I literally got with $50, it’ll probably last about, maybe, a couple of days,” he said.
The central bank’s next interest rate decision comes down on Oct. 23 when it will also update its economic forecasts for the country.
“The odds are rising that we’re going to see a jumbo, supersized interest rate cut by the Bank of Canada next Wednesday,” explains CityNews business editor Mike Eppel.
He explains the rate falling comes with a dire warning.
“As low as it is, combined with a weak forecast of recent reports on economic growth and unemployment, well, you have the Bank of Canada ready to cut interest rates.”
-With files from Afua Baah and The Canadian Press
