Rising costs are having an effect on Canadians.
The June 2023 inflation statistics, released last week, showed the Consumer Price Index rose by 2.8 per cent compared with the same month a year ago.
This increase alone may seem manageable.
However, the inflation rate is not constant for every expense.
Gasoline prices dropped by 21.6 per cent and cellular service rates fell by 14.7 per cent.
Meanwhile, grocery prices rose 9.1 per cent compared to a year earlier and mortgage interest rates are 30.1 per cent higher than they were in June 2022.
Housing costs are usually the largest portion of a household’s expenses.
There is no way increases of these magnitudes can go unnoticed.
Food costs affect everyone, no matter what choices they make at the grocery store.
Interest rates have a direct effect on those whose mortgages are up for renewal.
They also affect renters, as interest rates paid by the landlord will affect the amount of rent charged to a tenant.
While some will suggest tightening the belt or reducing unnecessary spending as a way to cope with rising costs, such suggestions are simplistic and inadequate.
When expenses increase but income stays the same, finances will become stressed.
This is a concern for all, but especially for those on fixed incomes and those who have already operating on tight budgets.
Even a small increase to rent or grocery costs will put added stress on an already fragile budget.
Inflation is a complex problem and there is no simple fix to curb rising costs.
However, the issue cannot be ignored.
Rising costs are taking a toll on Canadian households and the rapidly rising costs of food and mortgage interest need immediate attention.
– Black Press
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