As Canadians continue to face economic uncertainty and rising costs, we know that the cost of living remains a top concern for Canadian families.
When excluding gasoline, inflation only rose by 2.2% in September. This was a decline from August (2.4%) and well within the Bank of Canada’s target range.
Although food prices remain high, food purchased from stores saw prices increase at a much slower rate. Food inflation only increased by 1.7% in September, the second consecutive month below headline inflation and the lowest rate since May 2024.
We have made affordability a top priority since day one, but we will never sugarcoat the challenges we’re facing.
Increased fuel prices, driven by the conflict in the Middle East, coupled with trade tensions with the United States, has continued to push headline inflation up.
We are continuing to focus on what we can control – making life more affordable for Canadians now while investing in our future.
That’s exactly why we’re delivering timely, meaningful, and targeted relief for Canadians at a time when they need it:
Introduced the Groceries and Essentials benefit which will see millions of Canadians receive $1,900 more in their pockets this year.
Extended the pause on the fuel Excise Tax into the new year, giving Canadians a break at the pump.
Cancelled the federal consumer carbon tax effective April 1, 2025, saving Canadians up to 18 cents per liter.
Introduced the enhanced Canada Groceries and Essentials Benefit, which increased supports for Canadian families by 25% for five years starting in July 2026. This expanded benefit will put up to $1,900 more in the pockets this year and has already raised 77,000 people out of poverty.
Cut taxes for 22 million middle-class Canadians by lowering the first marginal personal income tax rate from 15% to 14% as of July 1, 2025, providing tax relief of up to $420 a year per person, or up to $840 a year for two-income families.
Eliminated the Goods and Services Tax (GST) for first-time homebuyers on new homes up to $1 million and reduced the GST for first-time home buyers on new homes between $1 million and $1.5 million, to immediately make the goal of home ownership a reality for more Canadians, especially young families.
Made the National School Food Program permanent, providing school meals for up to 400,000 children each year, saving participating families with two children in school an estimated $800 annually on groceries
Introduced Automatic Federal Benefits, starting in the 2026 tax year, to ensure up to 5.5 million low-income Canadians automatically receive the benefits they qualify for by the 2028 tax year, including the Canada Groceries and Essentials Benefit and the Canada Child Benefit.
Lowered costs and strengthened competition in essential services, including ambitious pro-competition measures in the telecom and financial sectors to reduce prices, make it easier for Canadians to switch providers, and lower banking and service fees.
Expanded the Canada Child Benefit, with over 6M Canadians per year benefitting.
Lowered costs for child care and kids essentials, including $10/day childcare which saves families up to $11,000 annually on average for every child enrolled.
Supported the Canadian Dental Plan which has served more than 6 million Canadians and saved families an average of $800/year.
Supported the Tax-Free First Home Savings Account, with over 750,000 Canadians enrolled.
Supported the Canada Disability Benefit, delivering up to $200 a month, helping 465,000 Canadians and lifting 40,000 out of poverty.
Capped non-sufficient fund fees at $10 and added consumer protections to help Canadians keep more of their hard-earned money in their pockets and make everyday banking fairer and more affordable.
Launched a National Anti-Fraud Strategy to help protect Canadians against scams, frauds, and financial crimes.
While we focus on helping Canadians afford the increased costs of the world today, we are also making the investments required for a more prosperous tomorrow. This includes tens of billions of dollars in investments in major projects, infrastructure, defence, and skilled labour in order to boost wages and create hundreds of thousands of new careers that mean Canadians can afford the lives they want and deserve.
Key Messages
Affordability has been our top priority since day one, and we’re acting on it right now, with timely, targeted relief for Canadians.
We’re putting money directly back in Canadians’ pockets, through the enhanced Groceries and Essentials Benefit, a tax cut for 22 million middle-class Canadians, and the Canada Child Benefit.
We’re cutting the costs families feel every day: no consumer carbon tax, a pause on the fuel excise tax, $10-a-day child care, and school meals for up to 400,000 kids a year.
We’re bringing home ownership within reach, with no GST for first-time buyers on new homes up to $1 million, and a Tax-Free First Home Savings Account that over 750,000 Canadians already have.
We’re making sure help reaches the people who need it, with Automatic Federal Benefits, the Canada Disability Benefit, and the Canadian Dental Plan.
We’re making everyday life fairer, with more competition in telecom and banking, non-sufficient fund fees capped at $10, and a National Anti-Fraud Strategy to protect Canadians from scams.
We’re going after the structural side of affordability too, starting with Canada’s first-ever national Food Security Strategy: over $3 billion to open the market to independent retailers and boost domestic food production.
And we’re investing in tomorrow, with tens of billions of dollars in major projects, infrastructure, defence and skilled labour that will boost wages and create hundreds of thousands of new careers.
If Pressed – Declining Real Wages
Direct support for household budgets:
The enhanced Canada Groceries and Essentials Benefit, which will increase supports for Canadian families by 25% for five years starting in July 2026. This increase will deliver $8.6 billion in additional support between 2026-27 and 2030-31, including to 500,000 new individuals and families.
Making the National School Food Program permanent, providing school meals for up to 400,000 children each year, saving participating families with two children in school an estimated $800 annually on groceries.
Expanding and entrenching the Canada Child Benefit with over 6 million Canadians per year benefitting.
Reducing key cost pressures where government can influence prices:
Federal actions are lowering or slowing price growth — such as childcare, cellular bills, gasoline costs, and parts of the food supply chain — by improving resilience, lowering production costs, and strengthening distribution systems.
Addressing the structural drivers of affordability:
Long-term measures focus on boosting productivity, expanding housing supply, and strengthening competition. These reforms aim to raise incomes over time and reduce the systemic cost pressures that have kept prices high.
Canada’s first-ever national Food Security Strategy, committing over $3 billion to break open the market for independent retailers, boost domestic food production, and build a stronger, more independent, and more affordable food system for all Canadians.
Because of the suite of housing measures the government has introduced to lower the cost of building more affordable housing and boost housing stock, rent has decreased every month over the past two years.
