Data confirm middle class Canadians, especially young families, have seen inflation eat away at their standard of living, Statistics Canada data showed yesterday. “Most workers have seen their purchasing power decline,” wrote the agency..“Wages and earnings have not kept pace with price pressures especially those related to food and shelter,” said a StatsCan report Research To Insights: Consumer Price Inflation, Recent Trends And Analysis. “Most workers have seen their purchasing power decline as inflationary pressures ramp up,” it added..According to Blacklock's Reporter, weekly earnings increased 4.2% on average last year, said Inflation. However over the same period rents increased 5.9%, the cost of running a family car rose 13.4%, food prices increased 14.8% and mortgage interests costs jumped 18%..“Increases in the cost of living are having a negative impact on net saving and wealth especially for more vulnerable households,” wrote analysts. “Low and middle income households have seen large reductions in their net savings while younger households have become more leveraged.”.“High inflation especially for food products has put a severe strain on living costs especially among more vulnerable households as income and saving levels adjust to the withdrawal in pandemic-related supports,” said the report. “Despite moderate increases in wages and earnings most workers have seen their purchasing power decline as inflationary pressures ramp up.”.“Young adults were among those most concerned over finances with almost half of people aged 35 to 44 saying they found it difficult to meet their financial needs in the previous 12 months,” wrote StatsCan..The report followed release of data by the federal Financial Consumer Agency that found 38% of Canadians are borrowing money to meet monthly expenses. “In the current economic context many Canadians are facing the biggest financial challenges of their lives,” said an Agency report. “More are borrowing money to cover their day to day expenses including by using high-cost loans.”.“The percentage of Canadians who borrowed money to cover daily expenses increased from 26 % in 2020 to 38 % in September 2022,” said Consumer Vulnerability. Other findings from monthly questionnaires showed 48% of Canadians had drawn down savings to meet monthly expenses while 25% routinely spent more than they earned each month..A total of 40% of Canadians surveyed said they were “just getting by financially,” said the Agency. Forty-one % worried they had no money to cover unexpected expenses like car repairs.
