The cost of living going up isn’t exactly a new concept in Canada, and we’re used to seeing the prices of things increase over time — but, with Canadian inflation rates recently hitting a 30-year high and food price increases stretching our grocery budgets thinner and thinner, most of us are not used to seeing prices go up by this much. At least we can take comfort in the fact that it’s not just in Canada: countries across the world are seeing inflation rates they last saw when Brangelina still dominated the headlines or, in many cases, when Brad was still with Jen. But it’s cold comfort when we have to fork out more of our hard-earned money for things that seemed to cost less just yesterday. With this in mind, we’ve rounded up 10 everyday things that will likely cost more in 2022.
Gas
According to StatsCan’s monthly statistics of the average gas prices in different regions in Canada, the average price per litre in January 2021 was $1.13. In January this year, it had gone up to $1.48 per litre. There are multiple factors that contribute to the cost of gas going up, including a sharp increase in the price of crude oil over the same period. Put simply, when the pandemic hit in 2020, there was a dramatic drop in demand for gas as people stayed home and so, oil-producing countries decreased production. However, these countries haven’t ramped up production at the same pace as demand has increased when lockdowns ended. As the price of oil is expected to continue to rise, so will gas prices – and rising gas prices are a major factor in the rising cost of everything else.
Related: 20 ways to cut your car costs.
Electricity
The crazy price of gas may make you wonder how much owning an electric vehicle costs. But not so fast: the price of energy is set to go up too, and you’ll feel it in your hydro bill. According to Reuters, a big reason for this is that efforts to invest in greener energy sources and basically rebuild the energy-based economy may be driving up prices for now. The good news is that the closer Canada moves to net-zero emissions and away from relying on fossil fuels, the likelier it is that energy prices will drop.
See also: Canadians still optimistic about 2022 despite soaring costs: Poll.
Cars
Even if you can swallow the higher costs of keeping it running, getting a new – or at least new to you – car this year may have you weeping into your empty wallet. CarGurus tracks used car listings and, according to their findings, the average price of a used vehicle has gone up by more than 38 per cent over the past year. Why has the cost of a car gone up in Canada? A key reason is that there simply aren’t enough cars – new or used – available to meet the demand. This is largely due to a shortage of the parts needed to build cars: from computer microchips to the semi-conductors.
Related: These are the best cars in Canada for first-time owners.
Food
Even if you don’t have a car, you’ll quickly find an answer to the question, “Is the cost of living going up?” — just look at your grocery bill.
In December last year, we reported that surging food prices could add $1,000 per year to grocery bills. This was based on the findings of Canada’s Food Price Report 2021, which predicted the price of meat, fruit and vegetables to go up by 4.5 to 6.5 per cent and baked goods by 3.5 to 5.5 per cent. Reasons for this include pandemic-related closures of production facilities and borders, the price of oil, the value of the loonie and changes in how food gets into your shopping bag amidst stricter safety practices. The trend is expected to continue this year, exacerbated by additional factors like climate change affecting supply.
Related: This grocery app helps save the planet while saving you money.
Netflix
So, with just about every food price gone up, you’ll save a bit of money by making snacks at home and staying in to watch Netflix instead of eating out, right? Unfortunately, Netflix raised their prices, too: a monthly subscription that cost $14.99 last year will now cost $16.49, according to Reuters. The company said that it’s to help pay for new shows. Luckily the GlobalTV app is free with your cable subscription, so you can still watch your favourite shows here on Slice.
Gaming Consoles and Video Games
Instead of chilling with a show or a movie, you may decide to get into gaming. Be prepared though, this is becoming a more expensive pastime too. According to Dealnews, demand for the PS5 and the Xbox Series S/X has remained huge since their release in 2020. After all, video games can help mental health. However, until manufacturers can increase production of these popular gaming consoles, price gouging may make them even more expensive. The games themselves are seeing price increases too, as they become more intricate.
You may also like: The 15 best money tips to set you up for success in 2022.
Computers
The pandemic fuelled an unprecedented demand for computers, especially business laptops and gaming PCs. With working from home not going anywhere, this demand remains high: so much so that manufacturers can’t keep up. CNBC explains shortages of components and microchips have been making it harder for manufacturers of electronics — including personal computers — to meet the demand. So, for now, many manufacturers are focusing on the more expensive products that can yield higher profits – and this means that you’ll have to pay more for a decent computer.
See also: 15 things Canadians pay less for.
Other Electronics
Supply Chain Dive says electronics manufacturers may raise prices between seven and eight per cent this year, at least south of the border. The reasons have mainly to do with the rising cost of producing these items, such as the costs of materials and labour. In addition to supply-chain issues making it more difficult to get parts, the Great Resignation has also made it more difficult to find workers. Most electronics companies expect these costs – and with that, their prices – to increase for the next six months, and Canadians can expect to feel the pinch too.
See also: Is the ‘do what you love’ mindset fuelling The Great Resignation?
Clothing
When the pandemic hit, the fashion industry took a huge knock as our workout wear became our work wear during lockdown. With many Canadians returning to the office in 2022, we’re investing in new clothes again — and the global fashion industry is recovering. However, McKinsey & Co.’s The State of Fashion 2022 report suggests that industry executives expect a retail price increase of 3.2 per cent, on average, in 2022, mainly due to supply-chain issues.
See also: Spring fashion trends you’ll see everywhere in 2022.
Housing
Housing — whether renting or paying a mortgage — tends to be one of the largest expenses for most Canadians. Unfortunately, this year you may have to spend an even bigger portion of your earnings on keeping a roof over your head. Real-estate marketplace Wowa keeps statistics on Canadian house prices and, according to their February 2022 report, the average price of a home in Canada was $748,439 in January — up by a whopping 20 per cent from January 2021. The demand for homes – especially detached single-family homes – surged during the pandemic as Canadians wanted to have more space and remote working meant they could look further afield.
The cost of renting in Canada has gone up, too: Rentals.ca’s March 2022 Rent Report says that the average rent for all the properties listed on their site in February was $1,820 per month: a price increase of 6.2 per cent from the same time last year.
You might also like: Best cities to buy your first home in Canada.
