Canadian wage growth has fallen behind price inflation

Prior to the pandemic and during the period that the Canada Emergency Response Benefit (CERB) was implemented, income growth outpaced prices. Since March 2021, price inflation has outpaced wage growth. The gap between wages growth and inflation in Canada over time is demonstrated below.

Wage-Inflation Gap = Weekly Wage Growth Rate - CPI Inflation Rate
Chart: Clement Nocos Source: Sources: Statistics Canada Table 18-10-0004-01 (formerly CANSIM 326-0020); Statistics Canada Table 14-10-0320-01 (formerly CANSIM 282-0167); Table: 14-10-0287-01 (formerly CANSIM 282-0087); authors own calculations.