2023-09-21 04:00:00
Inflation in Quebec has jumped 14.9% since February 2021, the month from which a series of relaxations of health measures related to COVID-19 came into force in all regions of Quebec.
During this same two and a half year period, from February 2021 to August 2023, the average salary of all full-time employees increased in Quebec by only 9.8%, or 5.1 points. percentage less than the inflation rate. This suggests that we have collectively become “impoverished” that much.
Another important observation to highlight from my analysis of the data reported by Statistics Canada: it is here, in our “Belle Province”, that the consumer price index has increased the most among the seven largest Canadian provinces.
We are notably “ahead” of British Columbia (13.8%) by 1.1 percentage points, Alberta (13.9%) by 1 percentage point and Ontario (14%) by 9/10 of percentage point.
HOUSING
Of all consumer spending, it is obviously “housing” that drains the most from household wallets. In the basket of Statistics Canada’s consumer price index, housing accounts for 28.34% of the entire basket.
From February 2021 to August 2023, housing in Quebec was hit by an inflation rate of 16.7%. While renting households suffered an increase in inflation of 12.7%, owners had their wallets bludgeoned by aggressive inflation of 18.9%.
In terms of housing, the biggest victims of inflation are, among others, tenants who have been forced to move. Not being protected by the Rent Fixing Act of the Régie du logement, these tenants saw their rents increase significantly more than the average.
Other victims who fall into the trap of inflation: homeowners who have renewed their mortgages in the last two years. The cost of mortgage interest exploded by 37% due to the sharp rise in mortgage rates that occurred following the Bank of Canada’s spike in the key rate.
While the electricity bill, thanks to our Hydro-Québec, was limited to an increase of 7% in 2.5 years, that of natural gas would increase by 32% and that of fuel oil, by 61%.
Added to this is a 20% increase in home insurance and mortgage insurance, and an 18.5% increase in property maintenance and repair costs.
GROCERY CART
Of all the components of the consumer price index basket, food takes second place, accounting for 16.65% of the entire basket.
How much have they increased in the last 2.5 years? In Quebec, the increase is 19.9%, or 9/10 of a percentage point more than in Ontario and in all the provinces.
The largest increases were recorded in the following food groups:
Butter: 38.6% Grain products: 31.7% Fresh or frozen beef: 30% Bakery products: 21% Cheese: 20.4% Fresh or frozen chicken: 20.1% Fish: 19.7%
On the other hand, the lowest price increases are found for the following foods:
Fresh or frozen pork: 1.3% Fresh vegetables: 3.5% Fresh milk: 8.1%
L’ESSENCE
What regarding the third largest component of the consumer price index basket, namely transport, whose weight is 16.44% in the basket?
Inflation in this component has climbed solidly by 19.6% since February 2021.
But the “gasoline” sub-component particularly stood out in Quebec with a spectacular increase of 51% in 2.5 years, exceeding by several percentage points the increases recorded in Ontario (42.6%) and overall. of the country (44.6%).
CONSUMER PRICE INDEX
Increase recorded in Quebec
From February 2021 to August 2023
Food 19,9 %
Accommodation 16,4 %
Furniture, equipment 7,3 %
Clothes shoes 1,5 %
Transports 19,6 %
Essence 51,0 %
Personal care, health 12,9 %
Leisure, training, reading 13,2 %
Alcohol, tobacco, cannabis 14,0 %
Energy 33,1 %
Goods 15,6 %
Services 14,0 %
Index set 14,9 %
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