Wednesday, June 18, 2014

Wage and Price Inflations across Canada

In last week’s post, I was comparing the growth in the average hourly wage rate to inflation in Canada and found that pay rise was, on average, .84 percentage points above inflation. I go on with the same exercise looking now at provincial data.   

Average Pay Rise and Inflation in the Ten Provinces of Canada, 1998-2013, Data Source: Statistics Canada
Average Pay Rise and Inflation in the Ten Provinces of Canada, 1998-2013, Data Source: Statistics Canada
Last year, inflation was 1.03 percentage points higher than average pay rise in Prince Edward Island. In Manitoba, since 2011, prices have been rising faster than wages. Whereas workers are losing purchasing power in these two provinces, the situation is much better in New Brunswick and British Columbia. Since 2011, inflation has slowed down and average hourly wage keeps rising in these two provinces.