What is inflation?
How does inflation impact Canadians’ finances? What is the current inflation rate in Canada?
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Inflation is the rising cost of goods and services, a.k.a. the cost of living. Over time, inflation erodes the purchasing power of money—for example, items that cost $100 two decades ago will now run you $144.61. In Canada, the most widely used measure of inflation is the Consumer Price Index (CPI), a fixed basket of hundreds of different goods and services, including food, shelter, clothing, transportation, health care and recreation. Each month, Statistics Canada checks the prices of these goods and services to see how much they have changed.
What is the inflation rate in Canada?
According to Statistics Canada, the current inflation rate in Canada is 5.2%, which is based on the CPI.
Example: “When planning for retirement, consider how inflation can affect your savings.”
Read more on inflation:
- Guide to inflation: Price changes, the pandemic and your pocketbook
This guide will help you understand what inflation is, how it’s calculated, and what it means for your personal finances. - What fast-rising interest, inflation and bond rates mean for investors
Investors face growing volatility as inflation surges, 10-year bond yields rise and central banks launch larger rate hikes. How did we get here? What’s next? - How might inflation impact your retirement plans?
Inflation not only affects the cost of living—it could mean your investments don’t grow the way you’ve hoped. Consider these strategies to keep your nest egg safe. - What does high inflation mean for your retirement savings?
How persistently high inflation affects investments, and what you can do to minimize the impact on your retirement savings. - Inflation and investments: Heads up if you’re retired or retiring soon
How will inflation affect your investments? Experts dissect what the rising cost of living means for retirees and those soon to be. - How to inflation-proof your portfolio
Investors who fail to make adjustments could be exposing themselves to more risk. - The one inflation tool you need for your finances
Feeling the burn from inflation? A high-interest savings account (HISA) can help you protect your money and grow your balance as the cost of living rises.
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