A new report from Statistics Canada shows that the consumer price index rose by an average of 6.8% that year, while the average annual wage in most provinces and territories decreased when adjusted for inflation.

The inflation levels reached in 2022 were the highest in 40 years, since it peaked at 10.9% in 1982.

Tax filers in 2022 reported an average wage of $45,380, a decrease of 1.6% compared to the previous year, after adjusting for inflation.

On the other hand, the report from Statistics Canada mentioned that the continuous increase in inflation directly affected the real annual wage values, salaries, and commissions reported by Canadians.

The report also pointed out that this decline coincided with employment activity in low-wage sectors during 2022, which came after periods of lockdown related to the COVID-19 pandemic in 2020 and 2021, alongside the Bank of Canada keeping the benchmark interest rate steady at 5%.

It indicated that a reduction in interest rates at its upcoming meeting in June would be possible as long as there is evidence of continued progress towards its 2% target.

The annual inflation rate has noticeably decreased since then, reaching 2.8% last recorded in February.

The total inflation rate stood at 2.9% in January, down from 3.4% in December when it slightly increased compared to the previous month.

Canadians working in sectors least affected by the COVID-19 pandemic experienced significant hits in their adjusted average annual wages during 2022, with the largest declines in education and public administration, both of which saw reductions of about 5%.

Additionally, the transportation, healthcare, agriculture, and construction sectors experienced declines of about 2 to 3%.

The Northwest Territories saw the largest decrease in average annual wages after adjustment for inflation, at 7.2%, yet the region maintained the highest average wages in the country.