:format(url)/cloudfront-us-east-1.images.arcpublishing.com/lescoopsdelinformation/IAUHKPBJVJB47BFJTWNPE2XNYE.jpg?fit=%2C&ssl=1 "2024 Economic Forecast and Cost of Living Increases in Canada: Grocery, Property, Taxes, and More")
Overall, the anticipated price increase should be lower than in 2023. This can be concluded by following the curve of the Consumer Price Index and other economic indicators. According to Statistics Canada, the major variations are behind us, but some increases are still expected. Here are six to budget for now.
The grocery store
We know that the cost of a grocery basket has risen sharply over the past two years. The bill will continue to be higher in 2024, but competition between supermarkets should limit the increase to around 4.5%, according to predictions contained in the Report on Food Prices in Canada 2024.
Bread, vegetables and meat represent the food categories which are expected to record the largest price increase with an increase varying between 5% to 7%.
Thus, for a family of four people, you will have to pay on average $313.40 per week, for an annual amount of $16,297.20. This is an increase of $701.79 from the projected 2023 total.
Buying a property
Do you want to buy a chalet, a condo or a house? For the purchase price, the sooner the better. On the other hand, to take out a mortgage, it is better to wait.
It is during the second part of the year that property prices are expected to experience the largest increases, after the Bank of Canada begins to slightly ease its key rate.
According to the Royal LePage agency, possible minor reductions in interest rates will fuel a 5.5% increase in property prices by the end of 2024.
In Canada, the median price of a single-family detached property and a condominium apartment is expected to increase by 6% and 5%, respectively, to $879,164 and $616,140.
Property taxes
What will your municipal tax bill look like? It would be wise to calculate now the increase that will affect your property.
Almost everywhere in the region, property tax increases await owners. Lévis recorded the highest increase at 7.7%, the strongest since the municipal mergers of 2002. While owners living in Quebec City will see the amount of municipal taxes increase on average by 3.9%.
Electricity
What about the electricity bill? The increase will not exceed 3% increase. This is what the Quebec government promised, which passed a law in December 2022 capping the increase in certain prices indexed to January 1 at 3% until 2026.
This is true for the rates for Hydro-Québec’s residential customers (but not commercial customers), but also for other public services, such as access to Sépaq parks, hospital parking lots and contribution to childcare services, in particular.
The rent
You are a tenant? The cost of rent could increase by up to 10% according to the Canada Mortgage and Housing Corporation (CMHC). A substantial and variable increase which can be explained by the strong demand for housing and by the increases in municipal and school taxes planned for 2024 which will be reflected in the price of rents.
More marked in certain regions where there is a housing shortage, the increase should also target more affordable housing and those with two bedrooms, which are more sought after.
Driving license and insurance
What about the driving license? Good news: for a third consecutive year, Quebec drivers are entitled to a holiday from paying the insurance contribution. And, therefore, at a reduced rate. This price will increase from $24.75 in 2023 to $25.50 in 2024 for the driving license for a passenger vehicle (class 5).
On the other hand, if you own a car, insuring it could cost more. Several insurance companies have recorded an increase in the number of claims and plan to pass the bill on to their customers. So it’s time to shop for your insurance!
As for the price of gasoline, opinions differ. While the price at the pump should continue to fluctuate, there is no indication that it will experience a significant increase.
So, let’s not take any chances and adopt a resolution to put money aside.
2024-01-03 01:52:32
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