Rising costs make 'living with dignity' difficult for those with lower income
Over the past year, the rise in the cost of living has been most brutal for those with lower income, according to a new report.
The income needed to "live with dignity" has risen faster than inflation, according to a study by the Institut de recherche et d'informations socioéconomiques (IRIS).
"People living in poverty or on the edge of poverty have less room to manoeuvre," said researcher Eve-Lyne Couturier. "It's harder to arbitrate between different categories of expenditure, and the most important expenses, notably housing and food, are categories that are very sensitive to inflation."
In 2015, IRIS developed the "sustainable income" bracket as an alternative indicator to the poverty line.
This includes basic needs and the expenses required to "live with dignity," such as vacations, cultural outings and saving for emergencies.
IRIS measured the indicator in seven Quebec municipalities for three household profiles: a single person, a single-parent family and a family of four.
IRIS estimates that the sustainable income threshold has risen by between 6.2 per cent and 19.3 per cent over the past year.
To live with dignity, a single person would need between $30,738 (Trois-Rivières) and $43,609 (Sept-Îles).
The necessary income for a family of four is between $72,788 (Trois-Rivières) and $86,585 (Sept-Îles).
A family in Sherbrooke, for example, needs an income of $78,563 in 2024 to reach the sustainable income threshold.
This represents an increase of 15.3 per cent in one year.
A single person in Quebec City needs $35,395, up 13.8 per cent on last year.
IRIS has also revised its methodology, as it does every five years, to ensure that its data is "as reliable as possible."
For groceries, IRIS took price readings in all seven regions.
Previously, price readings were taken in Montreal and adjusted for the other regions using other data.
"The 2024 data is much more representative of the cost of groceries," she explains.
The IRIS report also shows that minimum wage is insufficient to lift people out of poverty, Couturier points out.
In Montreal, a single person working a minimum wage job for 35 hours a week only reaches 68 per cent of their sustainable income.
According to IRIS, this person would need to earn $27 an hour to reach a sustainable income.
The minimum wage will increase by 50 cents to $15.75 on May 1.
A 65-year-old senior who receives $16,000 from the Quebec Pension Plan (QPP) in addition to the Guaranteed Income Supplement (GIS) and Old Age Security (OAS) pension, but who has no retirement savings, meets only 75 per cent of the minimum viable income.
"We can see that getting out of poverty is very demanding for people who are retired or working for low wages," emphasized the researcher.
-- This report by The Canadian Press was first published in French on April 29, 2024.
CTVNews.ca Top Stories
Independent stores and grocery alternatives see sales boost amid Loblaw boycott
As the month-long boycott of Loblaw-owned stores wears on, small independent food retailers and alternative grocery options say they're seeing a boost in traffic and sales.
1 dead, others injured after London-Singapore flight hit severe turbulence, Singapore Airlines says
One person has died aboard a London-Singapore flight that encountered severe turbulence, Singapore Airlines said Tuesday. The plane was diverted to Bangkok, where emergency crews rushed to help injured passengers amid stormy weather.
How to check the Air Quality Health Index and assess your health risks
As we enter another wildfire season, Environment and Climate Change Canada is advising people to pay attention to air pollution levels and check the Air Quality Health Index – especially on smoky days.
What is BORG drinking, and why is it a dangerous trend? An expert explains
If you've been to a party lately and haven't seen someone drinking a BORG, you're likely not partying with college students.
Oilers win Game 7 over Canucks, advance to Western Conference Final
The Edmonton Oilers weathered a late Vancouver Canucks charge on Monday night, beating the hosts 3-2 to win their seven-game second-round playoff series in the decisive showdown.
Katy Perry sings goodbye to 'American Idol'
Katy Perry said her goodbyes on 'American Idol' after seven seasons. On Sunday night’s live 'idol' season finale, a medley of Perry's hit songs were performed, including 'Teenage Dream,' 'Dark Horse' and 'California Gurls.'
DEVELOPING Defence witness who angered the judge in Trump's hush money trial will return to the stand
A defence witness in Donald Trump's hush money case whom the judge threatened to remove from the trial over his behaviour will return to the stand Tuesday as the trial nears its end.
The world's best airline is paying staff a bonus of 8 months' salary
Singapore Airlines will reward its employees with a bonus worth nearly eight months of salary, a person familiar with the matter told CNN on Friday.
Microsoft's AI chatbot will 'recall' everything you do on a PC
Microsoft wants laptop users to get so comfortable with its artificial intelligence chatbot that it will remember everything you're doing on your computer and help figure out what you want to do next.