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A false comfort:

Headline inflation in Canada is 2.4% (March 2026).

A quick reality check (simple math) Example:

Take a typical $100,000 household budget: 

- Housing: $40,000

- Food: $20,000

- Transportation: $15,000

- Other: $25,000

Apply what we’re actually seeing:

- Housing ↑ 8% → +$3,200

- Food ↑ 6% → +$1,200

- Transportation ↑ 5% → +$750

- Other ↑ 2% → +$500

Total increase = $5,650 (5.65%)

The gap matters:

- CPI (2.4%) → +$2,400

- Real life → +$5,650

That’s more than double the headline number, and it’s concentrated in non-discretionary spend.

After-tax reality (the part clients feel)

To fund an extra $5,650 at a ~40% marginal rate:

• Required pre-tax income ≈ $9,400 - So while CPI prints 2.4%, the income hurdle is closer to 9%.

Why this keeps showing up in meetings:

- CPI reflects an average basket, not client-specific spend

- Housing and food are underweighted vs. real cash flow impact

- Inflation is measured pre-tax, but clients fund it after-tax

Bottom line

2.4% is a statistic.

~5–6% is the lived experience.

~9% is the income reality