In 2024, Quebec experiences a notable shift in inflation dynamics, with housing costs surpassing food prices as the main contributor, leading to a 2.3% increase in the cost of living. Nationally, Canada’s inflation rate rises to 2.4%, the highest since 2011, while grocery prices stabilize at a modest 2.2% increase. Rental prices surge by 8.2%, and mortgage interest costs have soared. Experts warn that despite the lower inflation figure, the overall cost of living has significantly increased since the pandemic.
Shifting Inflation Trends in Quebec for 2024
In 2024, inflation dynamics in Quebec have undergone a significant shift, with housing costs overtaking food prices as the primary driver of inflation. The cost of living in the province has surged by 2.3% over the past year.
Canada’s Rising Inflation Rates
Statistics Canada reported that the national inflation rate has climbed to 2.4%, marking the highest annual increase since 2011, aside from the tumultuous COVID years of 2021, 2022, and 2023. Grocery prices, which previously saw increases of 9.8% in 2022 and 7.8% in 2023, have now settled to a more modest rise of 2.2% last year. Conversely, rental prices have jumped 8.2% in 2024, up from 6.5% in the previous year and 4.6% in 2022.
Homeowners are feeling the pinch as well, with mortgage interest costs skyrocketing by 20% last year, following an unprecedented peak of 28.5% in 2023. Jacques Nantel, an emeritus professor at HEC Montreal, notes that the fluctuations in key interest rates significantly impact inflation calculations, particularly for those renewing mortgages at substantially higher rates.
Sylvain Charlebois, a specialist in the field, expressed his astonishment at the rapid decline in grocery inflation, suggesting it could be the most significant drop in 50 years. He highlighted November’s grocery price increase at 2.8%, followed by a mere 0.6% in December, resulting in a notable 2.2 percentage point drop in inflation.
The Cost of Living Conundrum
Despite the seemingly positive inflation figure of 2.3%, experts like Nantel warn that this figure does not tell the whole story. With inflation compounded over the years, the cost of living has escalated to 1.4 times what it was before the pandemic, meaning that a dollar from 2020 now holds the value of only 60 cents.
Retailers are exerting pressure on suppliers to keep grocery prices in check, leading to challenges for smaller food businesses competing against giants like Walmart and Costco. This competitive