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Grocery costs climb as more Canadians seek debt help

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Canadians are heading into the new year with tighter budgets as grocery prices rise and more people look for help managing their bills.

The Credit Counselling Society (CCS) said the financial strain is showing up earlier than usual, with more households reaching out before holiday statements arrive.

Canada’s Consumer Price Index rose 2.2 per cent in November compared with a year earlier, but grocery prices increased at more than double that pace.

Grocery costs were up 4.7 per cent, the largest jump since December 2023, according to CCS.

CCS said the pressure is already leading more people to seek guidance. The non‑profit reports an 11‑per‑cent increase in counselling requests in November 2025 compared with the same month last year.

Those who reached out carried an average of $35,000 in unsecured debt, up from $31,000 a year earlier.

CCS president and CEO Peta Wales said many households are still struggling despite inflation appearing stable.

“Even though inflation appears stable at 2.2 per cent, many Canadians are still feeling the pinch in their daily lives,” Wales said.

She added that rising grocery costs and holiday spending are leaving families with less flexibility to manage debt.

The organization says the early rise in demand is a warning sign for January, when counselling spikes typically.

CCS says last year saw a 51‑per‑cent jump in people seeking help from December to January.

Isaiah Chan, vice‑president of programs and services at CCS, said the trend is likely to continue.

“Historically, counselling demand spikes in January after the holiday bills arrive,” Chan said.

He added that the early rise in requests suggests financial strain could reach unprecedented levels heading into the new year.

CCS advises Canadians to take proactive measures for budget management, including prioritizing essential bills, cutting holiday spending, and steering clear of high-interest credit.

The organization also recommends planning affordable meals and seeking guidance before bills pile up in January.

More information is available online or by calling 1‑888‑527‑8999.

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Report: Canada’s Finances OK Right Now

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For the time being, Canada’s finances are not too worrisome for a regional think tank.

Charles Cirtwell is Northern Policy Institute’s President, and tells us while the federal government keeps providing support during COVID-19, the debt to GDP ratio now is about 34%, much better than 25 years ago. “For those of us around in ’95, it was double back then. For those folks who remember years of cutting spending, no bridges, no twinning highways, closing hospitals…. it was twice as bad.”

The Policy Institute President estimates another four to five months before mid 90’s levels are reached. The debt to GDP ratio is the amount of debt owed compared to economic output, or, in other terms, the amount of debt a household has compared to income and the ability to pay.

However, a potential second wave is leaving him concerned. According to government figures, the budget deficit at roughly $350-billion, which hasn’t been seen since the Second World War, leaving Cirtwell questioning the $500 weekly Canada Emergency Response Benefit.

“There’s no question that we’re going to quickly get to a point where we’re not going to be able to sustain this. And the level of support, yeah, we’re planning on winding that down. But if we get a second wave, we’ll have to take a look at winding that back up. But I don’t think we’ll be able to afford the $500 in the second round,” says the Policy Institute President.

As for taxes, he says any politician promising no new taxes to pay for COVID-19 is lying. Cirtwell points out all political parties are hinging on economic recovery, while he’s looking at consumption taxes, such as the Goods and Services Tax.

“So instead of going after high income earners, or increasing personal income tax for all of us, which slows the return to work, I’d like to see a shift onto that consumption tax. The Harper government took away two percentage points on the GST.”

Cirtwell adds the Bank of Canada has kept the prime interest rate around 3-percent, in the mid 90’s it was about nine.

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Kenora MP “Shocked” With Economic Update

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The MP for Kenora is shocked the federal government didn’t provide a recovery plan after announcing a projected $343-billion deficit during Wednesday’s economic update.

Eric Melillo claims the Liberals seem content to keep our economy on “life support.”

Melillo says Canada has the highest unemployment in the G7, lost its AAA credit rating, and the total debt has ballooned over $1-trillion.

The Conservative says we are the only G7 nation that doesn’t have a comprehensive plan to restart our economy.

“We would have really liked to see some kind of road map. Even suggestions of policies from the Liberals on how we can begin to shift away from the temporary COVID-19 measures,” Melillo says.

Melillo claims the fact the Liberals were running high deficits during the relatively good economic times put Canada in an even worse position to respond to the pandemic.

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July 8th Date For Fiscal Snapshot

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The federal government will let Canadians know next month where we stand financially in the midst of the COVID-19 pandemic.

Prime Minister Justin Trudeau says an update will be provided in the House of Commons on July 8th.

“A sense of where we are. Comparisons to where we are compared to other countries. And some estimates on where we could be in the coming months. But this will not be an economic and fiscal update, it will be more of a snapshot or a portrait of where we are now.”

He stresses long-term projections won’t be provided.

Trudeau says “As we begin to safely and gradually re-start. I know people are wondering what this pandemic will mean for their jobs in the long run. What the impact has been on our economy and on our path forward. We hear that. We want to make sure that you have the best information possible.”

The 2020 federal budget was set to be tabled on March 30th, but those plans were scrapped because of the coronavirus.

 

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Dryden On Track Financially During COVID-19

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The City of Dryden has managed to financially survive the COVID-19 pandemic.

Treasurer Steven Lansdell-Roll says revenues have been impacted but the City has taken measures to mitigate the losses with some expense reductions.

To date, estimated revenue losses total $262,685 but savings come in at roughly $303,000 thanks to cost reductions, facility closures and staff savings.

Lansdell-Roll says the current projections are based on the assumption operations will return to more normal levels by the end of summer.

He believes the situation facing Dryden isn’t normal noting other municipalities have suffered financial hardships.

However, Lansdell-Roll warns there are still some big unknowns.

“If we have a second wave. We have further shutdowns. We are not able to open our Rec. facilities. The airport still has reduced activity. All of these things continue into the fall. That’s not reflected in the numbers.”

Municipal staff and administration are being praised for their work to keep the City running during the health crisis.

Councillor Norm Bush says the “OK” situation facing Dryden is important as they want to continue to be a viable and sustainable community.

“Certainly can’t rest on our laurels but it’s good to know that we’re not in bad shape as we go into the balance of the year. We do have a little bit of cash in our reserves as well. So it’s good to be in that position. I just thank everybody for the work that’s got us to that point.”

Mayor Greg Wilson says staff and administration have done an outstanding job to weather the storm.

Here is a breakdown of the financial impact from COVID-19:

Current Known Losses (estimates to June 30)
-$51,000: Interest/Penalties waived through to June 30
-$137,325: Recreation Centre Revenue (Pool, Fitness Centre and Arena)
-$19,410: Outdoor Recreation Facility Revenue
-$3,350: Library Revenue (fines, room rental, photocopying, etc.)
-$12,600: HISA Interest (interest rate dropped from 2.415% to 1.705%)
-$24,000: MAT Revenue (reduction of roughly 35%) through to June 30
-$15,000: Airport Revenue (As of April 30)

Current Known Cost Saving Measures (estimates to June 30)
-$26,990: Recreation Centre Utilities
-$10,750: Recreation Centre garbage, cleaning, etc.
-$79,995: Summer Student Recruitment delay
-$135,420: Staffing cost savings due to facility closures
-$50,000: Benefit Refund (based on claims lower than premiums)

Current Unknown Impacts:
-Water/Sewer Revenue reduction due to reduced consumption (No significant consumption impacts recorded in April or May)
-Building Permit Revenue reduction due to construction activity deemed non-essential (Unsure if any planned 2020 construction projects will be deferred)
-2020 Capital Plan delays due to contractor availability/travel restrictions (At this time, no delays anticipated)
-Travel/Training cost savings due to cancellation of conferences/travel restrictions (To Be Determined)

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Feds Not Discussing Possible COVID-19 Tax

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If the Trudeau government is considering a possible tax to pay for COVID-19 spending, the health minister is not saying.

There are predictions the federal deficit could hit $250 billion.

Patty Hajdu says it’s still “too early” to predict what any economic recovery might look like adding they just want to get Canadians through this.

“We know that we’ll have to have some serious conversations down the line about how we address the deficit and the debt that will result from this time.”

The Thunder Bay-Superior North MP notes Canada was in an excellent financial position prior to the pandemic which allowed the government to spend this way.

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Dryden Crunching Numbers To Determine COVID-19 Impact

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The City of Dryden is still working on determining the full scope of the financial impact related to the COVID-19 pandemic.

Treasurer Steven Lansdell-Roll says airport revenues were down the past two months, however year-to-date numbers are similar to 2019 levels.

However, he notes those numbers are skewed because the City introduced higher airport user fees last year.

Lansdell-Roll says they are also taking a hit on their new Municipal Accommodation Tax, introduced in January, with fewer people staying at hotels and motels.

Lansdell-Roll says at this point in time they feel that they can accommodate those impacts with their existing operations.

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Dryden Finishes 2019 In The Black

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The City of Dryden finished the 2019 fiscal year with a roughly $500,000 surplus.

The preliminary year end financial statement shows operating revenues at $29,746,449 and expenses at $29,238,092.

Treasurer Steven Lansdell-Roll says revenues were about 1% lower than expected and expenses were about 2.7% lower than projections.

Lansdell-Roll says they did have some vacant staffing positions that weren’t filled last year.

Final salary, wages and benefits came in at $13,105,508, $534,826 below expectations.

Lansdell-Roll says the capital program for last year called for roughly $313,000 in City funding and that was fully utilized.

He notes some projects weren’t completed because those were based on external funding sources that didn’t come to fruition.

Those include:

-Library Shelving
-Airport Sweeper
-Airport Wet Dry Material Spreader
-Rec Centre: Pool Roof Replacement
-Rec Centre: DWV Piping Replacement
-PW Sanitary Manhole Lining
-Fire Breathing Apparatus Cylinders

The General Reserve Fund for the City of Dryden stands at $4,500,689.

The 2019 financial statement shows an outstanding debt of roughly $13-million.

Lansdell-Roll says “The end of 2020, which is this year, our debt servicing costs are going to be at a much more manageable level than they have been in recent years. So the hope is that starting in 2021 we can address additional infrastructure needs.”

In 2021, the city’s long-term debt repayments drop to just over $1-million.

The year end finances still have to be audited.

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COVID-19 Financial Impact On Dryden

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It’s still too early to tell the direct impact COVID-19 has had on City of Dryden finances.

Treasurer Steven Lansdell-Roll says as of now it’s a wash between revenue and losses.

He talks about some of the negative impacts.

“The Pool, Fitness Centre and Arena. We estimate that our revenues will be lower by $137,000. Assuming that our outdoor facilities are closed for May and June, we estimate that revenues will be lost to the tune of just over $19,000.”

Lansdell-Roll notes interest and penalty payments will continue to drop and they’ve already lost about $3,300 with the Library being closed.

He notes they have been able to find some savings.

“Delaying our Summer student recruitment through to June 30th. Assuming that things open up and we hire some students effective July 1st. But there are savings of just over $45,000.”

Lansdell-Roll says they are also handcuffed by a reduction in water and sewer revenue, loss of money from the Municipal Accommodation Tax and a drop in Interest revenue.

Lansdell-Roll cautions things will likely change as there’s still a lot of unknowns right now.

“I anticipate that we’re going to see quite a substantial hit already, absent even any further or additional measures that Council wants to approve, we are going to see a substantial reduction in our water and sewer revenues in 2020.”

He says that’s because non-essential businesses are closed and hotels, motels and restaurants are using less water right now.

Lansdell-Roll says the exact financial impact is unclear right now.

He outlines another concern for the City of Dryden.

“With the construction limitations. Our building permit revenue would be reduced this year, hopefully just deferred to another period or when the activity opens again.”

Lansdell-Roll provided a breakdown at a virtual meeting of Council this week.

Current Known Impacts (estimates to June 30, 2020)
Losses
-($31,500): Interest/Penalties waived through to April 30, 2020 *NOTE: Will continue to drop if an extension is approved on April 27th
-($137,325): Recreation Centre Revenue (Pool, Fitness Centre and Arena)
-($19,410): Outdoor Recreation Facility Revenue
-($3,350): Library Revenue (Fines, room rental, photocopying, etc.)

Current Known Cost Saving Measures (estimates to June 30, 2020)
-$26,990: Recreation Centre Utilities
-$10,750: Recreation Centre garbage, cleaning, etc.
-$45,485: Summer Student Recruitment delay
-$133,900: Staffing cost savings due to facility closures

Current Unknown Impacts:
-Water/Sewer Revenue reduction due to reduced consumption
-Reduced Interest Revenue due to prime interest rate reduction
-Municipal Accommodation Tax Revenue reduction due to reduced local accommodator occupancy
-Building Permit Revenue reduction due to construction activity deemed non-essential
-2020 Capital Plan delays due to contractor availability/travel restrictions
-Travel/Training cost savings due to cancellation of conferences/travel restrictions

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Insurance/Financial Planning During Pandemic

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The importance of planning ahead has become front and centre during the COVID-19 pandemic.

Despite the doors being locked, services continue to be offered at Sun Life in Dryden.

John Vincent was a guest on the CKDR Morning Show today (Tuesday) and he says a lot of people have stepped back to reassess everything.

“More people at home. More people with their families. More people are starting to think this is a great time, I’ve got a little bit of time to be able to sit down and have a look at things.”

Vincent adds it’s a chance for people to “discuss my current situation and maybe future situation and am I prepared to meet those goals from a financial standpoint, whether it be on the insurance end or the investment end.”

Meantime, both levels of senior government have come out with various emergency aid packages to assist those impacted by the health crisis.

However, a number of people affected are starting to wonder how they are going to pay for such things including insurance.

John Vincent addressed some of those concerns this morning.

“Talk of some programs coming down the road that we might be able to assist people in that. Essentially right now we’re just helping people out as much as we can from a holistic standpoint on the insurance and investment side.”

Vincent says staff are available to discuss your insurance and financial needs and concerns through email, text, cell phone or a Zoom meeting on your computer.

You can contact John Vincent at 938-5486 or john.t.vincent@sunlife.com or Sig Olson at 221-8121 or sig.olson@sunlife.com

Visit the audio link below to learn more.

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