Canadian household purchasing power has increased despite inflation
(Version française disponible ici)
The themes of inflation, purchasing power and the cost of living have become omnipresent in Canadian and Quebec news.
Of course, Quebec and Canada are not alone in experiencing inflationary pressure. The COVID-19 pandemic, the effects of the war in Ukraine and problems in supply chains are experienced on a global scale. But how has the purchasing power of Canadians, and Quebecers in particular, evolved compared to other developed countries?
The answer lies in comparing the purchasing power of typical Canadian and Quebec wage-earning households with that of the developed countries of the Organization for Economic Co-operation and Development (OECD). The annual publication Taxing Wages includes detailed information on the situation of salaried employees with regard to income tax, social transfers and contributions.
For the purposes of international comparison, the OECD calculates disposable income for typical wage-earning households in each country. Each component of the calculation is defined in a similar way from one country to another, making it possible to include Quebec.
This analysis looks at different types of households with varying wage levels,........
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