As inflation rates soar to the highest they’ve been in Canada in forty years, nearly half of Canadians say that right now, they’re doing worse financially than they were at this time last year.
A further third say they expect things to get even worse in the coming year, the largest number of people to answer this way in more than a decade.
The results shed light on the plight Canadians are facing coast to coast.
Currently, inflation is at a staggering 7.7 per cent higher than last year, according to Statistics Canada. The inflation rate hasn’t been this high since 1983, the year that Canada Day replaced Dominion Day.
TRENDING DOWN
The percentage of Canadians answering that they are worse off financially now than a year ago has been increasing steadily over the last few years. In 2018, only 29 per cent of Canadians said they were doing worse than the previous year. That number climbed to 32 per cent in the first quarter of 2020, then to 45 per cent in the second quarter of 2022.
It’s now the highest that it has been since ARI started tracking this specific question in 2010.
At the same time, the number of Canadians who said they were doing the same as a year ago plummeted, going from 54 per cent in 2018, to 44 per cent in 2020, to 36 per cent in the second quarter of 2022.
Interestingly, the percentage of Canadians who say they are doing better than the previous year jumped to 23 per cent in 2020, after years of hovering around 13-14 per cent. That number is now at 17 per cent.
When these results are broken down into the household income of the respondents, those who are in the upper echelons of income, making more than $200,000 annually, were much more likely to report that they were doing better than last year financially, at 26 per cent, and the least likely to report that they were doing worse, at 30 per cent.
On the other end of the scale, those making less than $25,000 per year were more likely to say they were worse off this year, at 51 per cent, and less likely to say they were doing better than last year, at 15 per cent — underlining how the rich are hurt less by shifts such as inflation, and the poor keep getting poorer as rising costs hit their wallets.
Only one in five Canadians said they expected things to improve a year from now, while a third anticipated things to get even worse.
“Residents in Saskatchewan voice the most pessimism and least optimism on this question,” the report stated.
COST OF LIVING IS EXORBITANT FOR MANY
Concerns about the cost of simply living is the one that consumes the time and energy of most Canadians, with food, housing and bills driving a huge amount of financial worries across the country.
When asked what the top provincial issues were, with respondents being able to choose up to three options, “cost of living/inflation” was overwhelmingly the most popular selection, with 63 per cent of respondents selecting it as a major issue.
Health care and housing affordability took second and third place at 52 per cent and 31 per cent respectively, with climate change and the environment coming in at fourth with 26 per cent.
“Some regions of the country are under more economic stress than others,” the report stated. “In Atlantic Canada, the cost of living was already higher than most other parts of the country last year. And Newfoundland and Labrador, Nova Scotia, and New Brunswick have experienced higher rates of inflation than other provinces, alongside Manitoba and British Columbia.”
When it comes to the country as a whole, more than half of those who rented said that it’s difficult to afford their rent.
For homeowners, monthly mortgage payments are on the rise after a series of interest rate increase by the Bank of Canada. One quarter of Canadians with a mortgage say prices have already gone up, while another half said they anticipate a price jump. Two thirds say that if their payments increased by $300 a month, they might not be able to afford it anymore.
“The challenge for many, as pandemic-era supports are removed, and some struggle with repayment of the CERB they received, is to avoid debt creation,” the report stated, noting that many Canadians are already struggling with debt.
Two in five Canadians said they had credit card debt.
Of those who scored high on the ARI Economic Stress Index and were classified as “struggling” on that index, 62 per cent had credit card debt, and three-in-five of this group said it would take them more than a year to pay it off.
The Economic Stress Index, created in January, looks at core costs related to quality of life, such as debt, housing and household food costs, as well as the respondents’ anxieties and assessments of their own finances, to map out who is having a harder time.
There are four categories: struggling, uncomfortable, comfortable, and thriving. The proportion of those who are “thriving” has dropped six points since May, while the number of those who “struggling” has risen three points in that time period. Some good news is that 29 per cent of Canadians fit into the “comfortable” category compared to 26 per cent in May.
“A majority in each of the Atlantic provinces fall under the Struggling or Uncomfortable categories,” the report stated, with 55 per cent in Nova Scotia and 64 per cent in Newfoundland and Labrador falling into one of these two categories.
Across the country, in most provinces, more than half of the respondents fell into the one of the bottom two categories, with 64 per cent in Newfoundland and Labrador, 59 per cent in Alberta, 62 per cent in Saskatchewan, 57 per cent in Manitoba, 55 per cent in Nova Scotia and 54 per cent in Ontario. Prince Edward Island was not included in the survey.
“Only in Quebec (61 per cent) and B.C. (52 per cent) do more than half fall into the top two categories on the ESI,” the report stated. “Notably, by Statistic Canada’s CPI, those provinces have the lowest cost of living of any province in the country.”
The province with the single highest percentage of Canadian respondents deemed to be “thriving” was Quebec, with a whopping 30 per cent.
Just over 75 per cent of Canadians said their province had done a poor job of handling inflation.
Around one in three Canadians said their costs due to purchasing gas had increased, while just under half stated that those costs had gone down for them because they were consciously avoiding driving and seeking out other forms of transportation to save money.
FOOD PRICES LEAVING SOME HUNGRY
The report noted that inflation affects some goods more harshly than others.
“Food inflation was 10 per cent in May, higher than the 7.7 per cent inflation rate overall,” the report said.
Just over half of Canadians surveyed reported struggling to make the grocery bill each month, with the report noting that this is seven points higher than last October.
And the lower your tax bracket, the harder it is to put food on the table. Seven out of ten Canadians making less than $25,000 a year said it is difficult to feed themselves and their family, while at least one third of all incomes reported finding it hard to budget for food.
One B.C. resident told The Canadian Press that her grocery bill has more than doubled. Food Banks Canada are concerned that more and more children — who make up a third of those who rely on food banks — could be going hungry this summer as school ends and access to school-based food programs is cut off.
Earlier this month, NDP leader Jagmeet Singh called out MPs for laughing in the House of Commons after he spoke about Canadians being unable to afford groceries. In a video Singh posted of the incident, laughter can be heard after he states that one in four Canadians are going hungry.
“I just mentioned that Canadians are hungry and I hear laughter in the chambers,” Singh said after the Speaker asked him to repeat himself. “They should be ashamed of themselves. Absolutely ashamed.” He stated on social media that those who were laughing were Conservative MPs.
TRUST IN INSTITUTIONS
Amid rising inflation, the Bank of Canada is meant to keep the impact on Canadians to a minimum through policy adjustments, but Canadian trust in this institution is split, according to the survey. While 46 per cent said they trusted the Bank of Canada, 41 per cent said they did not.
When the political leanings of survey respondents were taken into account, the results became more stark: Past supporters of the Conservative party and the People’s Party of Canada were less likely to trust the Bank of Canada, with 59 per cent and 86 per cent indicating this respectively.
The Bank of Canada has admitted that it made missteps, and is now playing catch-up as Canada’s economy overheats.
CALGARY – Rachel Homan’s curling team is a win away from defending its PointsBet Invitational women’s title.
Homan beat Kaitlyn Lawes 10-5 in Saturday’s semifinal to extend her winning streak to 11 wins this season.
Homan, the reigning Canadian and world champion, will meet Kayla Skrlik’s Calgary foursome in Sunday’s final.
Curling Canada’s five-day PointsBet is a single-knockout event offering a purse of just over $350,000. The men’s and women’s victors each take home $50,000.
Skrlik beat Winnipeg’s Kate Cameron 10-4 to advance to the women’s final. The men’s semifinals features Brad Gushue versus Jordan McDonald and Brad Jacobs taking on Mike McEwen.
This report by The Canadian Press was first published Sept. 28, 2024.
REGINA – The Saskatchewan Roughriders moved into second place in the CFL’s West Division with a 29-16 victory over the Ottawa Redblacks on Saturday.
The Roughriders (7-7-1) reached 15 points and one more than the B.C. Lions (7-8-0) who lost 32-29 in overtime to the Hamilton Tiger-Cats on Friday.
The Redblacks (8-6-1) rank second in the East Division three points up on the Toronto Argonauts, who were at home to the Montreal Alouettes on Saturday night.
Kicker Brett Lauther led Saskatchewan going 7-for-7 on field goals. Thomas Bertrand-Hudon scored a rushing touchdown.
Ottawa kicker Lewis Ward produced nine points from his three field goals on four attempts. Kalil Pimpleton caught a touchdown pass for the Redblacks with just under two minutes remaining in the game.
Roughrider quarterback Trevor Harris completed 27 of 36 pass attempts for 315 yards.
Ottawa starter Jeremiah Masoli went 20-for-30 in passing for 210 yards and was intercepted three times.
Ward’s two field goals in the fourth quarter narrowed Saskatchewan’s lead to 15-9, but the Roughriders regained control with the game’s first touchdown.
Bertrand-Hudon took a pitch from Harris and broke through the Ottawa defence for a 26-yard touchdown run.
Harris connected with KeeSean Johnson on a two-point convert to increase the lead to 23-9.
Lauther’s sixth field goal added to that lead with four minutes left in the game.
Ottawa responded with its only touchdown when Masoli connected with Pimpleton on an 11-yard scoring pass with 1:56 remaining.
Lauther closed out the contest with his seventh field goal, from 37 yards, with 17 seconds left in the game.
Saskatchewan lost two starters on offence to injury during the game.
Tailback Ryquell Armstead, who ran for 207 yards in his Saskatchewan debut last week against the Calgary Stampeders, left the game in the third quarter with a shoulder injury.
Receiver Shawn Bane Jr. took a low hit in the second quarter when he tried to haul in a pass deep down the middle. He needed help off the field with an apparent right-knee injury.
Both offences struggled in the first half with Saskatchewan picking up 144 yards in total offence to Ottawa’s 116.
Lauther kicked field goals from 35, 33 and 21 yards in the first half, which gave the ‘Riders a 9-0 lead before Ward’s 37-yarder.
Ward missed a 46-yard field goal attempt late in the first quarter that Saskatchewan’s Mario Alford returned 75 yards to the Ottawa 43-yard line.
Alford’s return eventually led to Lauther’s second field goal of the game.
Masoli had a tough second quarter, tossing interceptions on consecutive possessions.
Rolan Milligan, with his league-leading seventh interception, snared the first. Marcus Sayles, with his fourth pick of the season, produced the second.
Saskatchewan linebacker Adam Auclair also intercepted Masoli in the third quarter.
UP NEXT:
The Roughriders play the Elks on Oct. 5 in Edmonton. The Redblacks have a bye week before an Oct. 14 date with the Alouettes.
This report by The Canadian Press was first published Sept. 28, 2024.
Thinner benefits and coverage changes await many older Americans shopping for health insurance this fall. That’s if their plan is even still available in 2025.
More than a million people will probably have to find new coverage as major insurers cut costs and pull back from markets for Medicare Advantage plans, the privately run version of the federal government’s coverage program mostly for people ages 65 and older.
Industry experts also predict some price increases for Medicare prescription drug plans as required coverage improvements kick in.
“This could be bad news for Vice President Harris. If that premium is going up, that’s a very obvious sign that you’re paying more,” said Massey Whorley, an analyst for health care consulting company Avalere. “That has significant implications for how they’re viewing the performance of the current administration.”
Insurance agents say the distraction of the election adds another complication to an already challenging annual enrollment window that starts next month.
Insurers are pulling back from Medicare Advantage
Medicare Advantage plans will cover more than 35 million people next year, or around half of all people enrolled in Medicare, according to the federal government. Insurance agents say they expect more people than usual will have to find new coverage for 2025 because their insurer has either ended a plan or left their market.
The health insurer Humana expects more than half a million customers — about 10% of its total — to be affected as it pulls Medicare Advantage plans from places around the country. Many customers will be able to transfer to other Humana plans, but company leaders still anticipate losing a few hundred thousand customers.
CVS Health’s Aetna projects a similar loss, and other big insurers have said they are leaving several states.
Insurers say rising costs and care use, along with reimbursement cuts from the government, are forcing them to pull back.
Some people can expect a tough search
When insurers leave Medicare Advantage markets, they tend to stop selling plans that have lower quality ratings and those with a higher proportion of Black buyers, said Dr. Amal Trivedi, a Brown University public health researcher.
He noted that market exits can be particularly hard on people with several doctors and on patients with cognitive trouble like dementia.
Most markets will still have dozens of plan choices. But finding a new option involves understanding out-of-pocket costs for each choice, plus figuring out how physicians and regular prescriptions are covered.
“People don’t like change when it comes to health insurance because you don’t know what’s on the other side of the fence,” said Tricia Neuman, a Medicare expert at KFF, a nonprofit that researches health care.
Plans that don’t leave markets may raise deductibles and trim perks like cards used to pay for utilities or food.
Those proved popular in recent years as inflation rose, said Danielle Roberts, co-founder of the Fort Worth, Texas, insurance agency Boomer Benefits.
“It’s really difficult for a person on a fixed income to choose a health plan for the right reasons … when $900 on a flex card in free groceries sounds pretty good,” she said.
Don’t “sleep” on picking a Medicare plan
Prices also could rise for some so-called standalone Part D prescription drug plans, which people pair with traditional Medicare coverage. KFF says that population includes more than 13 million people.
The Centers for Medicare and Medicaid Services said Friday that premiums for these plans will decrease about 4% on average to $40 next year.
But brokers and agents say premiums can vary widely, and they still expect some increases. They also expect fewer plan choices and changes to formularies, or lists of covered drugs. Roberts said she has already seen premium hikes of $30 or more from some plans for next year.
Any price shift will hit a customer base known to switch plans for premium changes as small as $1, said Fran Soistman, CEO of the online insurance marketplace eHealth.
The changes come as a congressional-approved coverage overhaul takes hold. Most notably, out-of-pocket drug costs will be capped at $2,000 for those on Medicare, an effort championed by Democrats and President Joe Biden in 2022.
In the long run, these changes will lead to a “much richer benefit,” Whorley said.
KFF’s Neuman noted that the cap on drug costs will be especially helpful to cancer patients and others with expensive prescriptions. She estimates about 1.5 million people will benefit.
To ward off big premium spikes because of the changes, the Biden administration will pull billions of dollars from the Medicare trust fund to pay insurers to keep premium prices down, a move some Republicans have criticized. Insurers will not be allowed to raise premium prices beyond $35 next year.
People will be able to sign up for 2025 coverage between Oct. 15 and Dec. 7. Experts say all the potential changes make it important for shoppers to study closely any new choices or coverage they expect to renew.
“This is not a year to sleep on it, just re-enroll in the status quo,” said Whorley, the health care analyst.
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The Associated Press Health and Science Department receives support from the Howard Hughes Medical Institute’s Science and Educational Media Group. The AP is solely responsible for all content.
