Price of gas, food, energy and goods to increase in coming months
Across the country, experts are sounding the alarm about rising inflation and how it will increase the cost of food, gas and energy for consumers.
Last month, Bank of Canada governor Tiff Macklem said higher prices are challenging for Canadians, making it harder for them to cover their bills.
Inflated gas, oil and energy prices will affect everything from goods, food and services, to a general increase in the cost of living, said Atif Kubursi, professor emeritus of economics at McMaster University.
How will this affect Hamiltonians?
The Spectator spoke with experts about the local impact of inflation and what people can do about it:
Gasoline
Gas prices are expected to soar in the coming months, said Dan McTeague, the president of Canadians for Affordable Energy, as the demand for fossil fuels is going through the roof," resulting in a shortage of energy sources.
The average fuel price per litre in January 2021 was $1.10, with slight increases in the following months.
In January, Canadian drivers were paying an average of $44 to fill a 40-litre tank and $66 for a 60-litre tank. McTeague expects prices to reach $1.74 per litre in the coming months - this means it'll cost drivers $69.60 for a 40-litre tank, and $104.40 for a 60-litre tank.
By December 2022, McTeague estimates fuel will cost Hamiltonians $2 per litre or $80 for a 40-litre tank and $120 for a 60-litre tank.
This uptick in gas prices won't just affect driving, though. McTeague said prices for goods would increase, too, as most sectors rely on gasoline for production and delivery.
Groceries
In 2021, Canadians were paying up to $695 more per year for groceries, or $13,907 in total for a family of four, according to Canada's Food Price Report 2021, and prices are set to increase even further in 2022.
For example, the Canadian Dairy Commission recently announced the wholesale price of milk will increase by 8.4 per cent in December, and butter will increase by 12.4 per cent early next year.
In September, the average price of homogenized milk was $6.10 for four litres, but with this increase, the price may jump to $6.60. Butter was priced at $5.69 per 454 grams in September but may cost $6.39 with the 12.4 per cent increase next year.
Tom Cooper, the director of the Hamilton Roundtable for Poverty Reduction, said when purchasing healthy food becomes more expensive, people switch to less healthy high carb and high sodium products. Plus, minimum-wage earners and folks on social assistance programs often rely on food banks to remedy the cost of necessities.
Over the past year, prices for beef, chicken and pork increased by 13, 10 and 9.5 per cent respectively, while edible fats and oils increased by 21.5 per cent.
Purchasing healthy food is really challenging at the best of times," Cooper said. The expected increases won't help the problem.
Even if shoppers don't notice a jump in price at the grocery store, inflation can also mean smaller portions for the same cost, or shrinkflation." This practice masks price increases and mostly affects packaged and processed foods.
Household energy costs
Kubursi said if the winter is cold, the pressure on the energy sector will result in higher costs to heat homes with natural gas - an increase that may be four times higher than usual. So far, the price is about two-and-a-half times higher.
What can Hamiltonians do to prepare?
At higher prices, people are likely to buy less," Kubursi said, but it's hard to escape some commodities like gasoline for cars and heating homes during the winter.
One way to reduce energy consumption is to drive less and take public transportation, Kubursi said, and switching household energy consumption to electricity will help, too.
But these things are difficult to change overnight, especially for folks who rely on their vehicles to get to work or homeowners without the ability to switch their energy supply.
Who will inflation impact most?
Laura Cattari, a senior policy analyst with the Hamilton Roundtable for Poverty Reduction, said already marginalized folks will be the most hard-hit with the new economic trend, and she worries theyll be further disadvantaged.
Oxford Economics recently named Hamilton the fifth most expensive city to live in on the continent. According to calculations from Living Wage Hamilton, folks in the city earning minimum wage - about 30,000 people - should make at least $17.20 per hour to meet the cost of living.
With inflation, food and housing insecurity will rise, especially if wages aren't increasing to accommodate the cost of living.
Cattari said folks should determine what they can do without" and consider cheaper living situations to prepare for the upcoming months, but noted folks living in poverty have already done all these things."
Instead, more financial supports are needed to improve the quality of life for low-income folks, Cattari said.
- With files from the Toronto Star and The Canadian Press
Alessia Passafiume is a reporter with The Spectator. Reach her via email: apassafiume@thespec.com