A Distributional Analysis of the Purchasing Power of Canadian Households Since 2019
To study the discrepancies in the evolution of the purchasing power of Canadian households, this report provides a distributional analysis of inflation and Canadian household incomes since the start of the COVID-19 pandemic. Our analysis also includes a snapshot of purchasing power at the provincial and territorial level.
Communications
Quotes
-
Based on our analysis, the price of the basket of goods and services has increased by 15% since 2019, but disposable income has increased by 21%, supported by government transfers, wage gains and net investment income, thereby improving the purchasing power of most Canadian households.
-
While disposable income has, on average, increased for households at all income levels from the pandemic, since 2022 rising inflation and tighter monetary policy have reduced purchasing power for lower-income households.
Parliamentary Budget Officer