Inflation Rate Now 7.6% As Canadians Continue To Fall Further & Further Behind

Yet again, inflation far outstripped wage growth. And key essentials like groceries are rising in price even faster than before.

The inflation rate in July was 7.6%, as the purchasing power of Canadians continues to erode.

While the top-line inflation number was slightly lower than the 8.1% increase in June, some aspects of inflation were even worse.

In fact, outside of gasoline prices – which have declined somewhat following massive increases – inflation was 6.6% in July, compared to 6.5% in June.

The decline in gas prices was also due to some provinces – particularly Ontario – cutting the gasoline tax, a measure the Liberal government has rejected federally.

Grocery prices surge

Any relief Canadians get from lower gas prices will largely be offset by surging grocery prices. Those prices are up 9.9%, higher than the 9.4% increase in June.

As noted by Statistics Canada, “Other food items also exhibited faster price growth, including non-alcoholic beverages (+9.5%), sugar and confectionery (+9.7%), preserved fruit and fruit preparations (+10.4%), eggs (+15.8%), fresh fruit (+11.7%), and coffee and tea (+13.8%).”

Rent rises

With many Canadians turning to rentals as of late amid a distorted housing market, that escape hatch is also being closed.

Average rental prices rose 4.9% in July, far higher than the 4.3% increase in June.

Inflation again outstrips wage growth

Wages rose 5.2% in June, far below the 7.6% inflation rate.

This means most Canadians have fallen even further behind.

The only reason even more people aren’t upset about this is that the way we look at inflation is almost perfectly designed to obscure reality.

Prices aren’t really ‘going up,’ rather our money is losing value.

So, while the government can technically claim that people have ‘more money’ due to higher wages, that money is worth less and less.

It is essential for Canadians to understand this, because that understanding is what enables us to truly comprehend how we are being robbed by inflationary policies.

Spencer Fernando