This is presentation on the cost of living in Canada. Inflation measure growth in prices which then can impact how people spend their after tax dollars on the economy. The increase in the inflation rate was driven by carbon taxation/pricing policies introduced by both the Alberta and Ontario governments.

1. Inflation jumps by 50% in
January 2017 for Canada
By: Paul Young, CPA, CGA
Date: February 24, 2017

2. AGENDA
• Inflation Rate
• Core Inflation
• Why should be care
about inflation?
• Wages vs- Inflation
• Headlines / Inflation

3. Inflation Rate / Canada
December 2016
1.5%
January 2017
2.1%

4. What drove Inflation
Source - BMO
Commentary:
• Both Alberta and
Ontario introduced
carbon tax/pricing
• Gas Prices were
impact by change
in price per liter
• Food prices
decline, but there
is grocery battle
(lowering of prices)
• New fuel taxes
have not work
themselves
through supply
chain system

5. Why should consumers care about
inflation?
Source – Stats Canada
Commentary
• On average Canadians spend
about 20% of their budget on
transportation
• Ontario the annual fuel cost
could take about $250.00 out
of people’s pocket
• Alberta the annual fuel cost
could take about $325.00 out
of people’s pocket
• The carbon tax could hurt
people’s pocket by $500 to
$1,100 / year
• Consumer spending drives
2/3 of the economy in
Canada
• National carbon pricing for
Canada by 2018

6. Wage –vs- Inflation
• Wage Growth
(annualized
November 2016)
1.3%
• Inflation January
2017
2.1%
Wages continue to lag behind inflation

7. Key Comments