OTTAWA — Inflation and higher interest rates have eroded Canadians’ purchasing power since 2022, particularly for lower-income households, a new report from the parliamentary budget officer has found.
But wealthier households have seen their purchasing power rise thanks in big part to their investment income.
Over a longer time period — since the last quarter of 2019 — the average purchasing power of Canadian households rose by 21 per cent.
Government transfers, wage gains and net investment income supported the gain, said Parliamentary Budget Officer Yves Giroux in the report.
“However, this conclusion does not provide a full picture of the recent changes to purchasing
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