Inflation has impacted the lives and spending habits of many people in Calgary and across the world for the last couple of years, especially on groceries and entertainment.
“Every single person has a different experience, because we each buy different things,” says Trevor Tombe, an economics professor at the University of Calgary. “The price of one item will be increasing at a different rate than the price of another.”
The variations of price rates can be seen in the December 2023 Consumer Price Index of released by Statistics Canada.
The Consumer Price Index jumped by 3.4 per cent over a year-by-year basis, which is a 12-month change. The index includes gasoline which rose by 1.4 per cent and transportation by 3.2 per cent over 12 months.
Tombe sites the main factors for the increased cost of living as the COVID-19 pandemic, disruptions to global transportation and the Russian invasion of Ukraine.
“We’ve seen inflation rise a little over 8 per cent last summer,” said Tombe. “That’s a year-over-year price change that accelerated from 3 per cent a year earlier.”
Tombe points out that this acceleration is the fastest seen since the 1950s, making this an unprecedented situation.
“I police pretty heavily what kind of things I buy at the grocery store,” says SAIT film student Jackson Clarke. “I don’t buy chicken anymore.”
The higher prices create incentives for some people to shop around more and monitor the prices at the various grocery stores in the city. The Consumer Price Index shows that store-purchased food prices rose by 4.7 per cent.
“I think we’re all very mindful of what we should and shouldn’t be doing,” says Linda Gardner, a SAIT business practicum instructor. “I go to some stores more than others.”
Entertainment and luxuries took a hit in many people’s budgets.
“I’ve noticed last year that I’ve spent more than I have this year,” says Isabelle Milner, a student in the business administration program at SAIT. “That’s just because I can’t afford a lot of things and don’t want to be spending that money.”
Some students admit to being a lot more selective when it comes to dining in restaurants.
“I don’t go out for meals anymore,” says Clarke. “I haven’t been out for a meal in almost two years.”
Over at Phoenix Comics, staff and customers admit that inflation prices affected their spending.
“I’ve been bouncing between several different hobbies,” says Sammi Thai, a U of C student and frequent customer at Phoenix Comics. “I’ve tried to limit myself from spending too much in one (hobby) so that I can enjoy the rest.”
Other patrons have slashed their consumption more drastically to save money.
“I’ve had to pull back spending on my hobbies significantly,” says Clarke. “I’ve cut more than half the comics I regularly subscribe to.”
But some people have not made any changes to save money, even if there are consequences.
“I haven’t really made an adjustment to my budget,” says Suliana Mekonnen, a SAIT business student waiting for a friend by Tim Hortons in the Senator Burns Building. “I’m just spending as usual, so it’s really impacted my savings.”
Thai believes that high prices are the result of corporations, monopolies and collusion to keep prices high.
“They can jack up the prices while we suffer,” she says.
Gardner says she believes it’s a matter of wages not being increased while the prices of goods and services rise.
“It concerns me that some of our students are having to work several jobs to pay their rent, tuition and whatnot,” she says.
According to Tombe, there’s not a single cause for the recent acceleration of prices.
“Energy, food and durable goods that Canadians import are largely the factors,” says Tombe. “Underlying all three of those factors was that there was a good deal of demand for goods and services in part facilitated by strong household finances.”
The way many people have dealt with this situation is to avoid debt and live more within their means.
“Avoid the temptation of going to credit for things you can’t afford,” says Clarke.
A better hold on budgeting has also worked for some people.
“Try to be conservative when spending and save where you can,” says Brian Ziemba, owner of Phoenix Comics.
Despite the difficult economic times, Tombe believes there is still reason to be optimistic this year.
“I think that the drop in inflation was farther than many expected,” he says about the figures. “If recent trends continue then it’s going to continue getting back to normal.”
Tombe mentions that most of the items of the items responsible for inflation except shelter have come down with the potential to normalize by the summer.
