LOW INCOME FAMILIES STRUGGLE WITH INFLATION IN CANADA BY KIERA FRIESEN
Low Income Families Struggle with Inflation in Canada
Over the past few years, Canada has been struggling with inflation. With Russia's invasion of Ukraine and government spending regarding COVID-19, prices have risen continually. The rising prices cause low-income families to struggle to survive. Families are losing their homes, struggling to feed their families, and can’t buy basic needs. Saskatchewan has tried to take action, but the low income families deserve more support.
According to Statistics of Canada in May 2022, inflation rose to a whopping 7.7% in Saskatchewan; an inflation rate no one has seen since 1939 during the Great Depression. This caused the CPI (Consumer Price Index) to increase by 6.3%. The Statistics of Canada conducted the Portrait of Canadian Society survey from April 19th to May 1st, 2022. In the survey, they found that 3/4 Canadians found it difficult to meet day-to-day expenses, having to change their behavior to adapt to the new prices, and with good reason. Gas prices rose by 12.0%, shelter prices rose 7.4%, and grocery prices rose 9.7% (fresh fruit 10%, meat 10.1% and fresh vegetables 8.2%). They shared the results of their interviews of residents in Canada, “When asked in which area they were most affected by rising prices during the six months preceding the survey, 43% of Canadians answered food. After food, the most affected areas were transportation (32%), shelter (9%) and household operations (8%).” With these expense rises, it made every-day living difficult, especially to those with low income.
The Government of Saskatchewan created the Saskatchewan Low-Income Tax Credit (SLITC). This is to be active from June 2022, to June 2023. The SLITC states that each low-income individual will earn $358, adding another $358 if they have a spouse or common law partner. It also states that the family will earn $141 per child, but it only includes that income for up to two children. Once the family net income reaches above $33,755 annually, the tax credit is reduced. This still causes issues in low income families and doesn’t provide enough support for them. Since the tax credit only covers two children, a larger family would have a harder time. Single parents with several kids struggle the most with this.
Currently, the increase in hourly wage rate only covers 3.6% out of 7.7% of the inflation rate. The Canadian government should increase the hourly wage to match the inflation rate, and provide more job opportunities targeting low-income individuals. If the government even raised the hourly wage rate by 5.0%, this would help low-income families cover more costs to keep up with their needs. Housing and groceries are the highest expenses, and Canada needs to notice those who are struggling.
WORKS CITED
Agency, C. R. (2022, May 31). Government of Canada. Canada.ca. Retrieved January 19, 2023, from https://www.canada.ca/en/revenue-agency/services/child-family-benefits/provincial-territorial-programs/province-saskatchewan.html
Government of Canada, S. C. (2022, June 22). Consumer price index, May 2022. The Daily - . Retrieved January 19, 2023, from https://www150.statcan.gc.ca/n1/daily-quotidien/220622/dq220622a-eng.htm
Government of Canada, S. C. (2022, June 9). Rising prices are affecting the ability to meet day-to-day expenses for most Canadians. The Daily - . Retrieved January 19, 2023, from https://www150.statcan.gc.ca/n1/daily-quotidien/220609/dq220609a-eng.htm
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