Impact of Inflation

For many, the fact that the living wage increased by 9 to 12%in all four cities is not a surprise. Between June 2021 and June 2022, the CPI rose by 8.1%in Canada, the most significant year-over-year change since January 1983.[17] New Brunswick has seen a similar trend, with the year-over-year CPI increasing by 9.1%.

Wages are not keeping up with the rise in prices; according to Statistics Canada?s June Labour Force Survey, between June 2021 and June 2022, average hourly wages rose by 5.2%. According to Senior Economist, David MacDonald, two-thirds of workers? wages in Canada fell behind inflation.[18]

The main driver of this drastic year-over-year change in CPI is the rising price of gasoline; between June 2021 and June 2022, gasoline prices increased by 54.6%in Canada (61.3%in New Brunswick). This aligns with our findings. In all four cities, there was a considerable increase in the transportation expense for the family: 21.7%in Saint John, 24.0%in Fredericton, 23.0% in Moncton, and 23.9% in Bathurst. This is mainly due to the cost of owning and operating a private vehicle, which accounts for 1,200 litres of gasoline per year. The substantial rise in gasoline prices contributes most to this increase.

Food costs are also rising. Between June 2021 and June 2022, every category saw an increase, from a low of 7.6%for fruit, nuts, dairy, and eggs, to a high of 18.2%for fish, seafood, and other marine products. When compared to our 2021 living wage, the food expense for our reference family is up by 8.6%in 2022.