Recent increases in the rate of inflation have caused concern about the financial resilience of Canadian households. Of particular concern are significant increases in the cost of basic necessities such as food, shelter and transportation. The impact of price increases in these goods and services, however, will affect households differently depending on the share of the household budget allocated to those items.
This report examines the impact of inflation on different income groups based on their differential household spending patterns. Based on this analysis, the lowest income households in Canada experienced a 5.8% rate of inflation in 2022 compared to a rate of only 3.7% among the highest income households. This differential will exacerbate existing trends of economic and social inequality.
Read the full report here.