Rising prices take centre stage in federal election as cost-of-living weighs on voters

CTV financial commentator Pattie Lovett-Reid on what party leaders are promising in terms of tax cuts and who will benefit from them.

Outside a No Frills in Hamilton, Ont., David Craig packs a few bags of groceries into the back of his car, as he tells CTV News he’s been stockpiling a little more.

Craig worries the trade dispute with the United States could send prices for some food items soaring. So, he’s stocking up on frozen fish and frozen vegetables.

“I think prices will definitely go up,” he says. “So, I’m prepared for that.”

Across the country, inflation has eased from its peak, but for millions of Canadians, the sting is still very real. From rising rents to costlier insurance and mortgage payments, the price of daily life is shaping up to be a central issue in the April 28 federal election.

“You definitely feel the pinch,” one grocery shopper said. “I noticed the oil was crazy — I didn’t even buy it. I’ll make do with what I’ve got.”

Another said he’s cut back on chicken and milk.

“There are some things I just don’t buy anymore because they charge too much.”

Affordability a pillar of party leaders’ campaigns

In February, the annual inflation rate rose to 2.6 per cent — higher than expected and up from 1.9 per cent the month before. While not at crisis levels, and partially due to the end of the GST holiday, the climb was enough to raise eyebrows. According to Statistics Canada some individual costs have jumped sharply in the last year, including:

• Rent, up 5.8 per cent

• Car insurance, up 7.5 per cent

• Mortgage interest costs, up 9 per cent, as more homeowners renew at higher rates

A recent Narrative Research survey found 67 per cent of Canadians now rank the cost of living as the top issue facing the country.

The federal parties are making affordability a pillar of their campaigns. The Liberals and Conservatives are promising income tax cuts, and the NDP wants to unlock federal land to help build more affordable housing.

Diane Suazo is a mother of two who runs a travel and lifestyle food blog called The Flying Couponer. She says her grocery bills have jumped from $300 to $500 a week over the past few years.

Her family eats out less, they travel less, and they buy more items in bulk and on sale.

“There are a lot more people looking to save money,” says Suazo.

She says her family has put off home renovations because it’s taking longer to save. And while she welcomes promises of tax relief, she wonders if more direct action is needed like price controls.

“For sure we are worried — the price of everything is going up,” she says. “We’re wondering when this is going to stop.”

Trade war could add fuel to inflation fire

Meanwhile, Bank of Canada Governor Tiff Macklem is warning that a potential trade war with the U.S. could add fuel to the inflation fire — and that interest rate policy might not be enough to initially contain it.

“Monetary policy cannot offset the impacts of a trade war,” Macklem said earlier this month. “We’re going to get weaker economic activity. We’re going to get higher prices. Higher inflation.”

The next major inflation reading — for March — will be released on April 15, less than two weeks before voters head to the polls.

It could be highly influential and one of the most important data points of the campaign.