The current surge in inflation has multidimensional impacts on Canada’s youth population, who were recently the most adversely affected demographic group in terms of getting and retaining employment during the COVID-19 pandemic.
You don’t have to be an economist to realize that prices have risen considerably over the last year, disproportionately affecting Canadians’ ability to meet our day-to-day living expenses.
According to the Bank of Canada, the kind of inflation we’re all seeing is “a level not seen in nearly 40 years.”
Inflation is defined as the rate of increase in prices of goods and services over a given period. It is a broad measure of overall increases in prices in a country or the cost of living in a country.
The inflation that reared up this year comes from complex causes and carries consequences, different from previous inflationary episodes. Pent-up demand, supply chain disruptions, fuel price surges, and market power of the corporations are some of the main factors contributing to higher prices.
Current inflation has not resulted from rising wages or tight labour market conditions. Nominal average hourly wages or wages in dollar terms and total compensation per worker grew by 3.3% and 4.6% year-over-year, respectively, ending the first quarter of 2022.
These figures are well behind the consumer price inflation of 6.8% in the 12 months ending in April 2022, which went up further to 7.7% by the end of May 2022.
What’s more, the surge in inflation has multidimensional impacts on Canada’s youth population, who were recently the most adversely affected demographic group in terms of getting and retaining employment during the COVID-19 pandemic.