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Winnipeg Inflation Rate Analysis: Costs, Economic Impacts, and Future Outlook

Key Insights

  • According to the 2024 Consumer Price Index (CPI), Winnipeg’s inflation rate rose 1.4% year-over-year in June 2024, significantly lower than the national average of 2.7%.
  • The same report shows that the Shelter Consumer Price Index reached 193.10 in November 2024, marking a 4.72% year-over-year increase.
  • Data from AreaVibes shows that living costs in Heubach Park, Old Tuxedo, and Tuxedo are 20% higher than the city average. 
  •  Manitoba’s gas tax break helped the province achieve an inflation rate of 0.8% in January 2024, the lowest in Canada. However, its benefits are less pronounced for renters and low-income groups. 
  • The Manitoba government predicts that the province’s inflation rate will stabilize at 1.5% in 2024, rising slightly to 2.1% in 2025.

Inflation in Winnipeg has significantly impacted household budgets, particularly due to rising shelter and food costs.

Research by the Manitoba Bureau of Statistics shows that as of June 2024, the Consumer Price Index (CPI) in Manitoba rose by 1.4% year-over-year, compared to the national average of 2.7%.

Meanwhile, shelter costs in Winnipeg increased by 4.7% over the same period, reflecting the strain on housing affordability.  Food prices also rose by 3.7%, further challenging residents’ ability to manage their expenses. 

While some categories, such as transportation and clothing, experienced slight decreases, the overall cost of living remains a concern for many households.

Category Year-Over-Year Change (%)
Shelter4.7
Food3.7
Health and Personal Care3.5
Alcoholic Beverages & Tobacco2
All-Items Consumer Price Index1.4
Transportation-2.3
Clothing and Footwear-4.2
cpi-trends-infographic

Inflation Rates Across Provinces in Canada

A report on Manitoba’s Consumer Price Index (CPI) reveals that the province’s CPI rose by 1.4% year-over-year as of June 2024, maintaining the lowest inflation rate among Canadian provinces alongside Saskatchewan.

Province All-Items CPI (% Change) Food CPI (% Change)
Manitoba1.43.7
Saskatchewan1.43.7
Alberta33.6
British Columbia2.63.3
Ontario33.1
Quebec2.21.2
New Brunswick2.83.2
Nova Scotia3.53.8
Prince Edward Island3.25.1
Newfoundland and Labrador2.33.2
inflation-trends-by-province-chart

Manitoba’s CPI is notably lower than the national average of 2.7%. However, specific categories such as shelter and food continue to experience substantial increases.

Manitoba’s shelter costs rose by 4.7%, slightly below the national increase of 6.2%, showcasing the relative effectiveness of provincial policies in moderating housing costs.

In comparison, Alberta and British Columbia saw all-items inflation rates of 3.0% and 2.6%, respectively, while Ontario recorded a 3.0% increase.

Maritime provinces like Nova Scotia experienced higher inflation at 3.5%, driven largely by food and shelter price hikes.

Cost of Living Across Neighborhoods in Winnipeg

Data from the AreaVibes gives insights into the cost of living in Winnipeg. 

Neighborhood Cost of Living Index% Difference from Winnipeg Average (78)
Heubach Park940.2
Old Tuxedo930.2
Tuxedo930.19
Dufferin Industrial71-9%
Portage - Ellice71-9%
cost-of-living-across-neighborhoods-in-winnipeg-heatmap

Winnipeg’s overall cost of living index stands at 78, indicating it is 22% lower than the national average of 100. This lower cost is primarily due to housing expenses, which are 57% below the national average, with a housing index of 43.

Within Winnipeg, certain neighborhoods exhibit higher living costs. For instance, Heubach Park has a cost of living index of 94, making it 20% more expensive than the city average.

Conversely, neighborhoods like Dufferin Industrial and Portage-Ellice present more affordable living options, each with a cost of living index of 71, which is 9% lower than the city average.

Impact of Inflation on Specific Demographics in Winnipeg

Inflation in Winnipeg, particularly in shelter costs, has significantly impacted lower-income households, renters, single-parent families, and young adults. 

According to YCharts, inflation, particularly in shelter costs, significantly impacts lower-income households and renters in Winnipeg. 

Lower-Income Households and Renters

rising-costs-for-renters-and-low-income-households-infographic

Lower-income households and renters face significant challenges as shelter costs continue to rise. The Shelter Consumer Price Index (CPI) increased to 193.10 in November 2024, reflecting a 4.72% year-over-year increase. 

This increase makes it increasingly difficult for these groups to maintain affordable housing, as shelter expenses consume a larger portion of their incomes.

Single-Parent Families

challenges-for-single-parent-families-infographic

Single-parent families, especially those headed by women, face unique financial challenges. 

Statistics Canada reports that over 81% of single-parent families with young children are led by mothers, who often encounter labor market obstacles and wage disparities.

The Canadian Centre for Policy Alternatives also found that in Winnipeg, the living wage for a single parent with one child increased by 21.8%, from $17.40 per hour in 2016 to $21.20 per hour in 2020, reflecting rising living costs.

Impacts of Increasing Inflation Rates on Winnipeg

inflation-pressures-on-renters-in-winnipeg-infographic

Data from YCharts shows that inflation in Winnipeg has significantly burdened low-income households as shelter costs rise. Renters face compounding challenges as escalating housing costs coincide with stagnant wages.

The Shelter Consumer Price Index (CPI) increased to 193.10 in November 2024, a 4.72% year-over-year jump, leaving these households with less disposable income for necessities like food and healthcare.

Although data from CTV News shows that Manitoba’s gas tax break has helped reduce the overall inflation rate to 0.8%, the lowest in Canada, its benefits are minimal for those grappling with rising rents. 

Limited housing supply and increasing mortgage interest rates add to renters’ financial strain. Furthermore, food price increases have driven more residents to seek assistance from food banks. 

Interventions and Solutions to Rising Inflation in Winnipeg

how-manitoba-is-tackling-inflation-infographic

The Manitoba government has implemented several measures to mitigate inflation’s impact on residents. 

Notably, the province introduced a 14-cent per liter gas tax holiday, contributing to Manitoba achieving the lowest inflation rate in Canada at 0.8% in January 2024.

Additionally, the government has provided tax relief and affordability measures, including tax credits for renters and homeowners, funding for childcare, free birth control, increased support for fertility treatments, and rebates for electric vehicles. 

Furthermore, the province established a $200-million Carbon Tax Relief Fund, offering $225 payments to individuals and $375 to couples, to offset the federal carbon tax’s impact on household expenses.

The Future of Inflation Rates in Winnipeg

manitobas-inflation-outlook-infographic

The Manitoba government reports that Inflation in Manitoba is projected to remain relatively stable, with the Consumer Price Index (CPI) expected to dip to 1.5% in 2024 before rising slightly to 2.1% in 2025. 

This outlook reflects the impact of the Bank of Canada’s monetary policy adjustments, such as reducing the overnight rate to 4.75% in mid-2024. 

Provincial measures, including tax breaks and affordability programs, are also expected to support the moderation of inflation in key sectors like shelter and transportation.

However, Winnipeg’s inflation trends may vary due to local factors such as housing demand and municipal economic policies. 

These localized variables underscore the importance of monitoring both city-specific and provincial data to address inflationary pressures effectively.

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