Canadians continue to face mounting affordability pressures, with new figures showing food prices are rising faster in Canada than in any other G7 country while small businesses grapple with growing operating costs.Statistics Canada reported Tuesday that the annual consumer price index increased 3.2% in May, up from 2.8% the previous month. Food prices rose 3.8% year-over-year, placing Canada at the top of the G7 for food price growth.The latest data comes as a new survey from Merchant Growth suggests Alberta businesses are increasingly feeling squeezed by higher operating expenses, forcing many owners to cut spending, delay expansion plans, and reconsider hiring decisions.According to the survey, fuel costs are the largest source of financial pressure for Alberta businesses, cited by 71% of respondents. Insurance costs were identified by 36%, followed by labour costs at 29%. Tariffs, utility bills, and commercial rent were each cited by 21% of businesses.The survey found 43% of businesses have reduced spending in response to rising costs, while 21% have cut inventory. Another 21% said they have paused or cancelled expansion plans, and 14% reported delaying hiring or reducing staff..Conservative Leader Pierre Poilievre accused Prime Minister Mark Carney of worsening affordability and rising living costs, arguing Canadians are facing the highest food price growth in the G7 while the economy continues to struggle.“Mark Carney promised that he would be judged by the price at the grocery store — that was over a year ago,” Poilievre said. “He then went on to say that affordability was the best it’s been in a decade. It was all an illusion. After a year and a half of Mark Carney, it’s more costs, more taxes, more debt — more of the same.”Poilievre argued that Carney had failed to deliver on promises to improve affordability and grow the economy, instead presiding over rising prices and economic decline. He called on the Liberal government to reverse policies he says have contributed to the rising cost of living and reiterated the Conservatives' pledge to reduce spending, lower taxes, and make life more affordable for Canadians.Hash Aboulhosn, Chief Growth Officer at Merchant Growth, said many business owners feel trapped between increasing costs and the risk of alienating customers through higher prices."This year, many small businesses have raised prices, shelved their expansion plans, and in some cases, let staff go. Not because they wanted to, but because cost pressures have left them nowhere else to turn before they're forced to shut doors," Aboulhosn said."A hotter inflation number tells them the squeeze they have been swallowing for two years, much of it now coming straight off the gas pump and the utility bill, is not letting up."The economic pressures are unfolding as businesses prepare for what could be one of the biggest consumer spending events of the summer: the 2026 FIFA World Cup.Merchant Growth found Albertans are roughly seven times more likely to watch World Cup matches at locally owned establishments than national chains, with 20% choosing independent venues compared to three per cent selecting larger brands..Albertans also expect to spend an average of $60 on food and beverages while watching matches, while 57% said they plan to support local businesses in their dining plans this summer.Despite the anticipated crowds, many business owners remain cautious. More than three-quarters of respondents said they expect the World Cup will have little or no impact on revenue, while 36% reported lacking the cash flow or financing needed to invest ahead of the tournament.Aboulhosn said small businesses often face decisions that larger corporations can more easily avoid."When costs climb, a national chain has the scale and the balance sheet to wait it out. A neighbourhood owner has to decide this week whether to raise the price of a pint and risk losing a regular," he said."And we should be honest about what a price increase actually is for these owners. They are not padding margins. They are trying to cover their own rent and put food on their own table, the same pressure their customers are feeling."The latest figures suggest that both Canadian households and small businesses continue to face significant affordability pressures, with rising grocery bills, fuel costs, utility expenses, and other operating costs showing little sign of easing.
