Newswire

INFLATION & AFFORDABILITY CHALLENGES

May 25, 2026

Canada: “Food Inflation Capital” of the G7

It may be difficult to recall a time when a litre of gas was 52 cents and a carton of eggs was just $1.64. That was just 30 years ago. Flash forward to today, and Canada has now earned the title of “food inflation capital” of the G7 (Group of Seven advanced economies), with food prices rising by 6.2 percent in 2025 alone.¹ In response, Prime Minister Carney recently introduced the Canada Groceries and Essentials Benefit (CGEB) rebate (an expansion of the existing GST/HST rebate) targeted at low-income earners.

While the Consumer Price Index (CPI), the federal government’s official measure of inflation, suggests average prices have risen roughly 88 percent over three decades, your grocery bills likely tell a very different story (chart). Inflation becomes especially
troubling when incomes fail to keep up. For a growing portion of the population, this is a reality. When expenses, especially those like education and housing, become harder to afford, the impact is not just financial; it can influence confidence in economic opportunity and heighten social divides.

While affordability has come under increasing pressure, long-term investment performance tells a different story. Throughout the same period, investors have seen the S&P/TSX Composite Index rise more than 573 percent, even before accounting for reinvested dividends. That growth has outpaced the price increases across every category on the chart, including average home prices during a prolonged housing boom.

Of course, this growth did not come without volatility, including four bear markets spanning a combined 40 months, two of which saw declines of more than 45 percent. Still, for those who stayed the course, equities have proven to be one of the most effective tools for building wealth and offsetting inflation over the long run. If history is any guide, that’s encouraging news for long-term investors looking ahead to the next 30 years.

1. www.theglobeandmail.com/business/article-food-inflation-retail-decoder/

The information contained herein has been provided for information purposes only. The information has been drawn from sources believed to be reliable. Graphs, charts and other numbers are used for illustrative purposes only and do not reflect future values or future performance of any investment. The information does not provide financial, legal, tax or investment advice. Particular investment, tax, or trading strategies should be evaluated relative to each individual’s objectives and risk tolerance. This does not constitute a recommendation or solicitation to buy or sell securities of any kind. Market conditions may change which may impact the information contained in this document. Wellington-Altus Private Wealth Inc. (WAPW) does not guarantee the accuracy or completeness of the information contained herein, nor does WAPW assume any liability for any loss that may result from the reliance by any person upon any such information or opinions. Before acting on any of the above, please contact your financial advisor. Transactions of the type described herein may involve a high degree of risk, and the value of such instruments may be highly volatile. Such risks may include without limitation risk of adverse or unanticipated market developments, risk of issuer default and risk of illiquidity. In certain transactions prospective investors may lose their entire investment or incur an unlimited loss. This brief statement does not disclose all the risks and other significant aspects in connection with transactions of the type described herein, and prospective investors should ensure that they fully understand the terms of the transaction, including the relevant risk factors and any legal, tax, regulatory and accounting considerations applicable to them, prior to transacting. The information contained herein may include the opinions of representatives of third-party companies or organizations and may not necessarily reflect that of Wellington-Altus (WA) or its representatives. All third-party products and services referred to or advertised are sold by the company or organization named. While WA may have referral arrangements with some third-party companies or organizations, WA does not specifically endorse any of these products or services and is not liable for any claims, losses or damages however arising out of any purchase or use of third-party products or services. All insurance products and services are offered by life licensed advisors of Wellington-Altus Insurance Inc. or other insurance companies separate from WAPW.

If you no longer wish to receive commercial electronic messages from Wellington-Altus Private Wealth Inc., please send an email to unsubscribe@wellington-altus.ca

Recent Posts

A BRIEF LOOK AT THE SPACE SECTOR

The commercial space sector is undergoing rapid transformation. At a time when initial public offerings (IPOs) have been sparse, the industry has captured attention. In February, SpaceX merged with xAI in a deal valuing the combined enterprise at roughly $1.25 trillion, confirming its intent for a public listing this year.

A NOTABLE ROTATION

Since October 2025, U.S. small-cap stocks have staged a notable comeback, outperforming large-cap growth stocks as investors look beyond years of dominance by tech mega-caps. This has prompted the question: Is this a temporary bounce, or the start of a more meaningful trend?

The New Great Game: The True Significance of the Hormuz Struggle

The New Great Game has begun, and Rudyard Kipling gave us the metaphor. In Kipling’s 1901 novel Kim, a boy stumbles into a shadow struggle between empires over maps, passes, and buffer states; in 2026, the board has shifted to sea lanes, data centers, energy chokepoints, and payment rails, but the contest is no less real.

A BRIEF LOOK A CROSS FOUR DECADES

The share of global GDP among the world’s largest economies continues to shift, shaped by economic policy, technology and demographics. Equity market share has also shifted over decades.

Highlights from the 2026 Spring Economic Update

On April 28, 2026, Finance and National Revenue Minister François‑Philippe Champagne released the 2026 Spring Economic Update (the Update).

The opinions contained herein are the opinions of the author and readers should not assume they reflect the opinions or recommendations of Wellington-Altus Private Wealth. Assumptions, opinions and information constitute the author’s judgement as of the date this material and subject to change without notice. We do not warrant the completeness or accuracy of this material, and it should not be relied upon as such. Before acting on any recommendation, you should consider whether it is suitable for your particular circumstances and, if necessary, seek professional advice. Graphs and charts are used for illustrative purposes only and do not reflect future values or future performance of any investment. The information does not provide financial, legal, tax or investment advice. Particular investment, tax, or trading strategies should be evaluated relative to each individual’s objectives and risk tolerance. All third party products and services referred to or advertised in this presentation are sold by the company or organization named. While these products or services may serve as valuable aids to the independent investor, WAPW does not specifically endorse any of these products or services. The third party products and services referred to, or advertised in this presentation, are available as a convenience to its customers only, and WAPW is not liable for any claims, losses or damages however arising out of any purchase or use of third party products or services. All insurance products and services are offered by life licensed advisors of Wellington-Altus.