‘How do people on fixed income deal with inflation these days?’ I asked Camp after he got comfortable with a pint in front of him.

‘With difficulty is the simple answer but we both know that being squeezed financially has many ramifications. It can lead to anxiety, fighting, drinking, depression and worse. If you’re income is fixed and the bills double or triple the result is not good.’

            ‘As rents and mortgage rates double, food bills triple and incomes stay the same, it’s obvious what’s happening. The rich get richer and the poor get poorer.’

            ‘Rising income and wealth inequality are stoking social discontent and are a major driver of the increased political polarization and populist nationalism that are so evident today. Even if the grocery chains deny profiting from inflation, they’re profits rise simply because the prices are higher. If they make 5% on a $ 10 item before the pandemic, now they make the same 5% on the same item that now costs $ 20. Looks like their profits also doubled.’

            ‘While $ 10 of a fixed pension now only buys half of the same product as before Covid, which goes to show how depressing this inflation is for many seniors.’

‘Yes, I hear the same from my customers who are finding it more and more difficult to adjust to the rising cost of living, while their pensions stay the same. They have to change their daily routines in order to cope with the harsh reality and to make ends meet and many seniors are seeking help from charitable organisations. They can’t do the things they used to like going out for lunch with their friends or taking in a show or movie because they can’t afford it. Even visiting the grandkids in the city becomes an unwanted expense.’

‘A new report from Food Banks Canada found that this year’s food bank usage is at its highest since the survey started in 1989. Nearly two million visits to food banks in March 2023, up over 30% from the same time last year and over 200’000 of those visits were in British Columbia alone,’ I said.

‘You can blame the high house prices and soaring mortgage rates. Since 2020 nominal house prices have climbed by roughly 40% and fixed-rate mortgage rose from 3.1% to 7.3%, lifting the mortgage payments on a typical house by more than 50%. 

‘Vancouver still leads the way as Canada’s most expensive city for renters, with the average one-bedroom unit listed at $2,872 and a two-bedroom at $3,777.’

‘Who can afford that? CMHC (Canada Mortgage and Housing Corporation) predicts that in the next 2 years an estimated 2.2 million households will be facing interest rate shock as they have to renew their mortgages, representing 45% of all outstanding mortgages in Canada. In the real world a $ 500’000 mortgage with a five-year fixed rate and a 25 year amortization will go from just under 2% to 5.5% and will represent about a $ 1’000 increase in monthly payments.’ 

‘Welcome to the future,’ I said.

Ask me how I feel about paying $ 10 for a pint of beer?’

‘Does that include the tip?’

‘Don’t even get me started.’