Canada

Rising cost of living, crumbling affordability for Ontario voters

Chanakya Ramdev changed the place where she shops for groceries, no longer goes to restaurants and cooks all the dishes at home.

But a resident of Waterloo, Ont., Says he is still struggling with rising food prices.

“The cost of living is rising everywhere, especially with food,” Ramdev said.

“It’s impossible to live in Ontario.”

As the province prepares for elections in June, experts say growing concerns about rising commodity prices are expected to dominate the campaign.

Inflation in Canada reached 6.7% in March as the price of gasoline, food and other items rose at the fastest pace in more than three decades, Canadian Statistics said last month.

Ontario housing prices are among the highest in the country, with average housing prices now exceeding $ 1 million in some areas, according to the Canadian Real Estate Association.

Gas prices in the province are approaching two dollars per liter, after breaking the all-time record last week – reached in March.

A recent study shows that rising prices for everyday goods are a key issue for voters in Ontario. Sixty-two percent of Ontario residents who responded to an Abacus Data survey in April said their household incomes lagged behind the cost of living.

He pointed out that the main problem for Ontario voters going to the polls is the reduction in the cost of living, followed closely by improving the affordability and affordability of housing.

“Life was not very affordable in Ontario – especially in Toronto – before inflation rose. Now inflation has made life here even more expensive, “said Sheila Block, a senior economist at the Canadian Center for Policy Alternatives.

“No one is happy with the rise in prices, but inflation does not affect everyone equally. Lower-income families and people spend more on basic necessities such as food, housing and transport, and when prices rise, they are less able to bear these higher costs.

Experts say a province can do little to curb staggering inflation.

Factors that are raising prices, such as the war in Ukraine, supply chain problems and strong demand for goods, are beyond the control of the province, they said.

“These are issues that are above the provincial level,” said Mario Sekarecha, a professor of economics at the University of Ottawa. “This is largely an international phenomenon.

Still, that hasn’t stopped the Ontario government – and now party leaders – from announcing plans to offer residents some relief from staggering inflation.

Ontario abolished license plate renewal fees in March and reimbursed drivers’ fees since March 2020. Progressive Conservatives have also removed tolls on two highways and introduced a temporary gas tax cut that will take effect in July on behalf of accessibility.

“We know that rising living costs have made many things more expensive and could make it harder for families to make ends meet,” Prime Minister Doug Ford said earlier this year.

The Liberals are committed to making all transit tickets in the province $ 1 on a trip by January 2024 and to eliminate the provincial part of the HST for prepared food under $ 20, such as grilled chicken.

These promises are appealing to voters, but experts say they are not the most effective way to help people struggling with rising costs.

For some residents, reimbursing $ 120 in a renewal fee or saving on travel costs as a result of a $ 1 transit rate can help them make ends meet, but others may not even notice – let alone to need the extra money.

“These are good tricks to be re-elected,” Sekareca said. “But that’s not the best way to deal with accessibility.”

Instead, the focus should be on helping lower-income people who tend to be disproportionately affected by higher prices, experts say.

“When you see things like the dramatic rise in food prices, we need to be concerned about lower-income people, because they will be hardest hit by rising costs,” said Valery Tarasuk, a professor of food science at the University of Toronto.

Raising the minimum wage, indexing social benefits and pensions to inflation and raising the basic personal tax credit would help those most in need, experts say.

The Progressive Conservative government has raised the minimum wage this year to $ 15 an hour after repealing the increase to that amount after winning the 2018 election, and plans to raise it to $ 15.50 in October due to inflation.

The NDP promises a minimum wage of $ 16 in October, which will rise to $ 20 in 2026. The party also says it will increase payments for social benefits and benefits for people with disabilities by 20 percent.

Liberals have promised a minimum wage of $ 16 an hour since January before creating regional living wages that experts say could reach $ 22 an hour in Toronto.

In addition, increasing the supply of affordable housing – which the NDP, PCs and the Greens are committed to doing – and taxing capital gains from the sale of private housing to help finance can help, they say.

“A strong tax on capital gains would discourage the conversion of houses and the use of real estate as an investment,” Sekareca said.

Meanwhile, Canakya of Waterloo says that while he can still put food on the table, he will continue to closely monitor the Ontario election campaign to ease rising food prices.

“I can’t go to restaurants anymore because the prices have doubled, so now I cook at home every day,” he says.

“I used to go to Sobeys because I found the quality better, but now I’m going to Walmart. I do what I can, but it’s still expensive. “

Canakya added: “Maybe it’s time for the government to get involved and put a roof on how much a company or restaurant can raise prices because food is crucial but becomes unaffordable.”