Most Canadians see another year of inflation eating away at income gains: StatCan

New data from Statistics Canada reveals that most Canadians experienced another year of declining real income in 2023, with inflation continuing to erode earnings.

The average income, when adjusted for inflation, fell by 0.3 per cent, landing at $59,900 for the average tax filer. This marks a continued downward trend following a steeper drop in 2022.

The only group to buck the trend? The ultra-wealthy.

Those in the top 0.01 per cent of earners saw their inflation-adjusted income rise slightly, reaching an average of $7.74 million. StatCan attributes this divergence to the nature of their income, which relies heavily on investments, dividends, and other non-salary sources.

For Kerolos Boktor, a fourth-year Construction Project Management student at Mount Royal University, the numbers reflect a harsh reality. Juggling full-time studies, work, and parenting, Boktor says the struggle is not about luxury—it’s about survival.

“It has nothing to do with luxury, it’s just about the basics… Inflation goes high, even when you try to have more income, it’s still not matching,” Boktor said.

“When you try to accumulate some income and wealth, the inflation is not matching that, so it’s harder and harder every day.”

Dan Beyaert, Associate Portfolio Manager at Bellwether Family Wealth, offered a long-term perspective.

“What I have learned in doing this for nearly thirty years is that the trend does not stay the same forever. Trends reverse, trends change. If things are not going economically with incomes, that can change,” Beyaert said.

Canadians like Oliver Youzwishen remain hopeful for systemic change.

“A better system to have businesses grow and employ people. That ultimately will allow everybody to flourish,” Youzwishen said.

The release of this data comes as Prime Minister Mark Carney prepares to unveil a new federal budget. Carney has cautioned that economic transformation won’t be immediate and may require sacrifices.

“To be clear, we won’t transform our economy easily or in a few months. It will take some sacrifices, and it will take some time,” Carney said.

Finance Minister François-Philippe Champagne is set to table the 2025-2026 budget in the House of Commons just after 4 p.m. ET on Tuesday following the close of trading on the financial markets.

When the budget was introduced in April 2024, it had $535 billion ($11.5 billion of that was new spending) in expenditures and a $39-billion deficit. Fast-forward to December when an updated economic statement (projecting a $48-billion deficit) was overshadowed by the sudden resignation of former finance minister Chrystia Freeland.

Since the spring election, opposition party members have been calling for Prime Minister Mark Carney’s government to table a budget and to be more transparent about the state of the country’s finances.

With files from Nick Westoll