2026 August 10
OTTAWA — Canadian households continue to grapple with higher food, housing and transportation costs, with opposition Conservatives arguing that the federal government has failed to deliver meaningful relief as families struggle to balance everyday expenses with debt and saving for the future.
In a statement released this week, Conservatives cited a series of economic and survey figures to argue that Canadians are facing an affordability crisis after more than a decade of Liberal government, including Prime Minister Mark Carney’s tenure.
The party pointed to Organization for Economic Co-operation and Development (OECD) data showing that Canada has experienced among the highest — and, according to the Conservatives, the highest — food inflation in the G7.
Conservatives also highlighted the fact that grocery-price inflation remained above overall inflation for an extended period, arguing that Canadians continue to feel the impact when they shop for basic necessities.
“Canadians can’t afford life under his Liberals,” the Conservatives said in their statement, referring to Carney and his earlier call for Canadians to judge his government by the prices they see at grocery stores.
The party argues that its proposed response would involve reducing the cost of government and lowering taxes affecting food, gasoline and homebuilding.
Groceries remain a major concern
The affordability pressures extend beyond the grocery aisle. According to figures cited by the Conservatives, 76 per cent of Canadians say food and groceries have the greatest impact on their household finances. Gasoline costs are putting pressure on 47 per cent of households, while housing costs are a significant concern for roughly one-third of Canadians.
The figures underscore the continuing political importance of affordability, even as Canada’s broader inflation rate has moved considerably lower from the peaks recorded during the post-pandemic inflation surge.
The distinction is important: lower inflation does not necessarily mean that prices have fallen. Rather, it means prices are
Debt is becoming a bigger concern
Household debt is another source of concern. The Conservatives cited a recent Equifax report indicating that approximately one-quarter of Canadians expect they will only be able to make the minimum monthly payment on their credit cards.
Families with children appear particularly exposed to the financial squeeze. More than half of households with children reportedly said they were spending more than they did a year earlier, compared with 35 per cent of households without children. The statement also cited survey findings showing that 42 per cent of Canadians with children had needed to take on debt to cover essential living expenses, 18 percentage points higher than the comparable figure among Canadians without children. Among Canadians under 55, fewer than half expect to pay their entire credit-card balance each month, while 22 per cent report difficulty paying down their debt.
These figures come against a backdrop of historically high household indebtedness in Canada.
The Conservatives cited a household debt-to-disposable-income ratio of 179.6 per cent, meaning households owe approximately $1.80 for every dollar of disposable income.
Savings taking a hit
Financial pressures are also affecting Canadians’ ability to prepare for the future.
The statement cited survey results indicating that 35 per cent of Canadians have reduced contributions to savings, investments or education funds.
At the same time, 44 per cent said they worry they are not saving enough for retirement, while more than two in five expressed concern about being able to handle an unexpected emergency expense.
A TD survey cited by the Conservatives found that 56 per cent of respondents said a single unexpected expense could force them to make difficult financial choices.
For households already carrying significant debt, an unexpected repair, medical expense, job interruption or other financial emergency can quickly translate into additional borrowing.
Conservatives put affordability at centre of attack
The opposition is using the figures to make affordability a central political attack against the Liberal government.
Conservatives argue that the government’s policies have contributed to higher costs and say Canadians need lower taxes, reduced government spending and measures to increase housing construction.
The party says its approach would focus on lowering the cost of government and reducing taxes on areas it says directly affect household budgets, including food, gasoline and homebuilding.
“Conservatives will lower the cost of government and taxes on food, gas and homebuilding to restore an affordable life at the till, at the pump and in a home families can call their own,” the statement said.
The government, meanwhile, has maintained that affordability must be addressed through a combination of measures aimed at economic growth, housing supply, household supports and cost-of-living relief.
A political and economic challenge
The competing narratives reflect a broader challenge facing Ottawa.
Canada’s headline inflation rate is no longer at the extraordinary levels seen earlier in the decade, but households continue to deal with the accumulated increase in the cost of food, shelter, transportation and other necessities.
For consumers, the practical question is not simply whether inflation is slowing, but whether wages and household incomes are keeping pace with the prices Canadians encounter every day. That distinction is likely to keep affordability near the centre of Canada’s political debate.
For the Conservatives, the continued pressure on household budgets is evidence that the Liberal government’s economic approach is not working.
For the government, the challenge is to demonstrate that its economic policies can translate into tangible improvements in the everyday financial circumstances of Canadian families.
As Canadians continue to confront high housing costs, expensive groceries and elevated household debt, the price of living is likely to remain one of the most closely watched measures of economic performance — both at the checkout counter and at the ballot box.
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