CARP is calling on governments at all levels to take action to relieve the crushing effects of rising prices on older Canadians. No matter what the level, older Canadians living on fixed incomes are hit hard by inflation.
The Conference Board of Canada (a Canadian independent applied research organization) shared consumer price index (CPI) statistics, noting that while it’s been 15 months beyond the Bank of Canada’s target range, we have not yet reached the peak of inflation. They write, “With price pressures still boiling over, we expect that year-over-year changes to the CPI will not start to fall until later this year.”
They also note that, “As Canadians cut spending amid rising prices, they may start looking for someone to blame. But the current bout of inflation has multiple causes and no “smoking gun” explanation. As inflation becomes politicized, it is worth remembering that global and domestic, and tangible and intangible factors are contributing to price growth in Canada.”
The consumer price index (CPI) tracks how much the average Canadian household spends, and how that changes over time. At the Bank of Canada, it is used to target inflation. Read what the CPI “basket” contains.
- In June, the Consumer Price Index (CPI) rose by 8.1 per cent (y/y).
- Gasoline prices rose by 6.2 per cent (m/m) and were 54.6 per cent higher than a year ago. Year-over-year food prices also increased in stores (+9.4 per cent) and restaurants (+7.1 per cent).
- Excluding food and energy, the CPI climbed by 5.3 per cent in June. Year-over-year prices were higher in all eight major CPI components. Rising prices in many shelter and transportation subcategories remained key contributors to overall CPI growth.
In recent surveys, CARP members indicated their financial worries are equal to or greater than their health worries.
Bill VanGorder, Chief Operating Officer of CARP notes, “CARP is very concerned about the cost of living for older Canadians. Inflation is a huge issue for older Canadians who must reconcile it to the reality of a fixed income. Given the lack of affordable housing in Canada many older Canadians are also assisting their children in financing homes, so they are also impacted by rising interest rates. CARP is committed to ensuring the elected representatives of our government are well aware of the financial realities of older Canadians and what could and should be done to make them more secure.”
One of CARP’s advocacy pillars is financial security. CARP’s current financial securitry advocacy work includes:
- Covid-19 impact and supports
- Mandatory RRIF withdrawals
- Pension Protection
- Banking Ombudsman
- Investor Protection
Check out the Bank of Canada’s Inflation Calculator: it allows you compare a basket of consumer goods from one year to another.