Financial Matters

Still feeling the pinch? You’re not alone. Most Canadians are still feeling the disruptive economic impacts of Covid-19 on their personal finances. While work and day-to-day life may be “back to normal”,  inflation and higher interest rates are still putting pressure on household accounts.  

There is some good news. In October 2023, Canada’s inflation rate dropped to 3.8%, which was better than economists were expecting. Inflation measures how much a “general shopping basket” changes in price over time, and Stats Canada said the recent drop reflects lower prices on items like travel, durable goods such as cars and appliances, and some groceries. Even the cost of gas fell 1.3%. 

More positive news is that Canada’s cost of living dropped a bit in September, after climbing for almost a year.  

But while these are encouraging signs for our economy, it’s hard to get too excited. That’s because even with the recent adjustments, most prices are still significantly higher than in the pre-COVID days and the improvements are not enough to relieve the strain at home. 

During COVID, to deal with the rising inflation rate, the Bank of Canada increased its lending rate to banks – and this raised mortgage rates for average homeowners. Making it harder to buy a home meant more people needed to rent, which increased the demand for apartments and the cost of renting them. Interest and mortgage rates probably won’t be dropping any time soon. 

So, if you’re one of the millions of Canadians feeling the pinch, know you’re not alone. Food, gasoline, and housing prices all had unprecedented increases at about the same time. No matter what you do for work or where you live, life just costs more these days.   

Canadians have learned to adjust their spending habits and lifestyles to cope with the increased cost of living, but that doesn’t mean it’s easy. 

All this financial pressure can be daunting because it feels beyond our individual control. Remember to take a deep breath, focus on reducing your personal debt, cut back on non-essential things, and if you run into financial problems or feel overwhelmed, reach out to your Employee Family Assistance Plan (EFAP) for free financial counselling services. They are confidential and can help you find peace of mind. The number is 1-800-661-8193. 

And remember, the National Construction Council is working hard to make sure that you have the hours, wages, and benefits you need to provide a good life for yourself and your family. Whatever the global economy might bring.