Vancouver Inflation 2022: Cost of Rent, Groceries, Fuel

Canada’s inflation rate accelerated to an all-time high of 4.8% in December of 2021 compared with a year ago. Entering 2022, Canada experienced the steepest inflation rate since September of 1991. Similarly, inflation reflected on the 2022 prices in Vancouver, BC.

The drastic change in the inflation rate is due to the global supply disruptions, as well as production and shipping struggles to meet the demands. According to the CBC News Report, wages aren’t keeping up despite the increase in the inflation rate. Below, we will discuss more about how the steep change affects Vancouver inflation and predicted costs.

Image of numerical calculations on a printed out sheet next to a pen and a calculator.
What is the Canadian Inflation Rate in 2022? Source: Pixabay

Index

  1. Vancouver Rental Inflation
  2. Vancouver Housing Market Inflation
  3. Vancouver Grocery Store Inflation
  4. Vancouver Fuel Inflation
  5. Cost of Personal Expenses
Graphic by Liv.rent providing visuals to the 2022 Vancouver inflation report.
How does the Vancouver inflation affect rentals in Vancouver? Source: Liv.rent Feb 2022 Report

2022 Vancouver Rental Inflation

  • In November 2021, the average rental price in Vancouver was $1,791; with a sudden jump, the average rental price increased to $1,831 in December 2021.
  • While there was not a huge change in average rental prices for unfurnished units entering January 2022, the average for furnished units rebounded after a steady decline.
  • Furnished unit prices in Richmond increased +68.40%, West Vancouver prices increased +33.26% and Coquitlam increased +20.00% in January 2022.
  • The most significant increase in unfurnished unit prices were seen in Surrey (+9.68%), and New Westminster (-7.16%).
  • Downtown Vancouver did not see a huge change in rental prices in furnished (-0.41%) and unfurnished (-6.11%) units.
  • In January 2022, the gap between furnished ($2,096), and unfurnished 1-bedroom rentals ($1,827) grew to $269; a big jump from the $37 gap of the last month (Liv.rent)
A hand putting a single coin in a plastic piggy bank, representing the need for saving up during the Vancouver inflation.
Vancouverites will pay more for home and mortgage insurance in 2022. Source: Joslyn Pickens

2022 Canadian Housing Market Inflation

  • Canadian home prices rose 0.8% from November 2021 to January 2022 as supply remained lower than the demand.
  • 8 out of 11 major Canadian markets (Teranet-National Bank Composite House Price Index) increased in price during the same period.
  • Victoria, British Columbia led the Teranet gains by 2.1%, and Halifax, Nova Scotia by 1.9%. Prices dropped in Winnipeg, Manitoba, Ottawa-Gatineau, and Edmonton, Alberta.
  • On an annual basis, the housing index increased by 15.5% (Reuters).
  • Similarly, costs for building supplies as well as construction processes.
  • Homeowners paid 9.3% more for home and mortgage insurance in December 2021 compared to the previous year.
  • Canadian Real Estate Association reported that the average home price in Canada is forecast to rise by 0.6% in 2022. (CTV News)
A masked woman inside a grocery store's produce aisle with a citrus fruit on her hand.
Prices increase for grocery store staples in Canada. Source: Anna Shvets

2022 Vancouver Grocery Inflation

  • StatsCan report a rise in grocery prices by 5.7% year over year. (StatCan)
  • According to Canada’s Food Price Report of 2021 Forecast vs Observed Change: “Restaurant meals, dairy, vegetables, and bakery products will increase between 5 and 8 percent next year in price.” (Consolidated Credit Canada)
  • The average family grocery spending for 4 people, will be approx. $1,000 in 2022.
Food expenditure report filtered by demographic and age, and predictions for the Vancouver Inflation.
Source: Food Price Report, 2022.
  • Prices on digital grocery platforms will increase by 2 to 8%.
  • According to Toronto Star, prices for fresh fruit increased 5.6%; apples by 6.7%, oranges by 6.6%, and bananas by 2.5% year over year. (The Star)
  • See the full Food Price Report – 2022
Food Category2022 Food Price Forecast – Change (%)
Bakery5 – 7%
Dairy6 – 8%
Fruits3 – 5%
Meat0 – 2%
Other2 – 4%
Restaurants6 – 8%
Seafood0 – 2%
Vegetables5 – 7%
Total Food Category Forecast5 – 7%

2022 Canadian Fuel Inflation

  • Not so surprisingly, gas prices increased at a slower rate year over year due to the Omicron variant that weighed on demand for gasoline at the end of 2021.
  • Since April 2020, drivers paid (-4.1%) less at the pumps. (StatCan)
  • In 2022, analysts predict an average increase of 20% for gas and diesel prices compared to 2021. (Global News)
A woman holding a picture of a Canadian flag. Flag is clear while the woman silhouette holding it is blurred.
Vancouver Inflation and Personal Expenses. Source: Alesia Kozik

How does Canadian Inflation Effect Your Personal Expenses?