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StatCan: The costs of providing basic necessities in Calgary are higher than in Vancouver and Toronto

StatCan: The costs of providing basic necessities in Calgary are higher than in Vancouver and Toronto

By Mounira Magdy

Published: December 9, 2023

The costs of providing basic necessities in Calgary are now more expensive than any other major city in the country – including Vancouver and Toronto – according to the updated Market Basket Measure released by Statistics Canada.

The Market Basket Measure is the official Canadian metric for family income poverty; it determines the amount a family of four must earn to afford a basic standard of living, calculated by the cost of a basket of essential goods and services, including food, clothing, shelter, and transportation.

Families living below the poverty line are those whose disposable income is less than the Market Basket Measure in their city.

New data as of 2022 shows Calgary’s annual Market Basket Measure at $55,771 – up from $51,861 the previous year.

This compares to $55,727 in Vancouver and $55,262 in Toronto. Edmonton ranks fourth at $55,225, with Ottawa-Gatineau in fifth.

Charles Saint-Arnaud, chief economist at Alberta Central, said he was not surprised by the figures.

While it is widely known that housing costs more in the two larger cities, he said other goods and services cost more in Alberta – such as electricity and insurance, for example – but said the Market Basket Measure itself does not tell the full story.

Saint-Arnaud added: “We still have higher incomes than the rest of the country,” adding that although Calgarians’ baskets cost more, people in other provinces are likely more hurt.

According to the latest census data, the average employment income per individual in Alberta in 2020 was $41,600 – still less than Calgary’s Market Basket Measure (for a family), but higher than Ontario and British Columbia, both at $38,000.

However, Saint-Arnaud pointed out that the income gap is narrowing.

He said: “Alberta residents’ incomes are not growing as fast as the rest of the country, so we are seeing convergence.”

Meghan Reed calls for strategies to address the root causes of poverty in Calgary, as the executive director of Vibrant Communities Calgary.

She says it’s important to remember that Alberta has some of Canada’s highest income inequality levels – meaning the province has the biggest gap between those who earn a lot, and those who earn very little.

Reed added: “That’s why we know many low-income people are very far from approaching the Market Basket Measure line, and I think we have to take that into account.”

In her talks with those living around and below the poverty line, Reed says people feel anxious, fearful, and resigned because the situation will continue to worsen.

She continued that Calgarians need income-focused solutions to address poverty, such as revisiting income support rates and ensuring wages keep up with the cost of living.

She said: “If we don’t do that, my fear is that more and more people will fall into poverty, and we know that long-term poverty service is really costly.”

“This is something we can address very quickly thanks to the wealth we have in this province – but there has to be some urgency behind it.”

She says these high current costs may mean goodbye to Alberta’s advantage.

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