There is still a long way to go before purchasing power is restored if you compare wage increases with inflation over three years.
From an economic point of view, the Legault government has nothing to boast about.
The fact that Quebec's annual inflation rate fell to 3.3% in January is certainly a good sign. But I remind you that this 3.3% is in addition to the wave of inflation that has hit us over the last two years.
Compared to January 2021, I calculated that Quebec's consumer price index increased by 15.3%, according to Statistics Canada.
How much did average weekly earnings increase in Quebec during this three-year period? Only by 12.7%.
So that means that the “real” purchasing power of all households in Quebec has fallen by 2.6 percentage points over the last three years.
- Listen to the economy part with Michel Girard above QUB :
Households have problems
When we compare, over a three-year period, the increase in the average wage of Quebec workers with the price increases they have suffered in “big” sectors such as food, housing and transport, we understand why so many Quebec households are reaping the benefits of a paycheck push on the other next.
Housing
The “Housing” sub-index has risen by 19.8% since January 2021. That is 7.1 percentage points more than the increase in average household compensation. Knowing that housing alone accounts for just over 28% of household consumption spending, we can assume that the sharp rise in the housing sub-index is having a devastating impact on people's wallets.
Homeowners facing a mortgage extension are devastated to see their mortgage payments have skyrocketed. The sub-index “mortgage interest costs” has exploded by 44% since January 2021, or 3.5 times the increase in compensation.
Another unavoidable expense that's hitting homeowners' wallets hard: Home insurance and mortgage insurance costs saw a 24.5% increase.
Eat
In the overall consumption basket, the “food” sub-index takes second place after housing due to its relative importance.
Not all households can believe how much their grocery bills have increased. Are they right to complain? Yes.
You should know that the food sub-index recorded a significant increase of 22.4% over three years, almost 10 percentage points more than the increase in the average wage of Quebec workers.
- Listen to the economy part with Michel Girard above QUB :
Some foods increased more: fresh or frozen beef (+26.8%); fresh or frozen poultry (+ 24.4%); butter (+ 25.6%); baked goods (+27.4%); grain products (+23%); fresh fruit (+30.4%); canned fruit (+28.5%); Edible fats and oils (+ 70.5%).
Slightly below the general increase in “food” are eggs (+ 21.7%), vegetables (+ 21.7%), coffee and tea (+ 20.5%).
The price of L'beings
The slowdown in inflation growth in Canada in January is largely due to the 4% decline in gasoline prices compared to January 2023.
Here in Quebec, the decline in gasoline was only 1%. There is no reason to feel less exploited by the oil companies.
As evidence of this, the gasoline sub-index rose significantly from January 2021 to January last year, even rising by 38.5%.
The “Traffic” sub-index has recorded an increase of 18.7% since the beginning of 2021.