Canadian household budgets were under pressure in the lead up to Christmas as consumer prices increased by more than wage growth.
Figures released Wednesday from Statistics Canada show that average weekly non-farm payroll earnings were $1,012 in December, little changed from November but up 1.8% year-over-year.
However, the Consumer Price Index for December increased 2.0% year-over-year in the month, picking up pace from 1.7% in November.
Earning more in the 12 months to December, average weekly earnings were workers in 7 of the 10 largest industrial sectors led by accommodation and food services. Earnings were little changed in construction, public administration as well as professional, scientific and technical services.
Average weekly earnings rose in seven provinces, led by Nova Scotia, but earnings declined in Saskatchewan and were little changed in Prince Edward Island and Alberta.
Better news ahead?
While the December figures show added pressure for household budgets, the January CPI gives some hope that things may be better for the start of 2019, depending on what happens with wages.
The Consumer Price Index slowed to a 1.4% growth year-over-year with energy costs showing the largest decrease (-6.9%).
On a seasonally adjusted monthly basis, the CPI declined 0.1% in January, following a 0.2% increase in December.
