The surge in living costs post-pandemic has deepened inequality in Quebec and Canada significantly.
Recent data released by the Quebec Inequality Observatory highlights a stark reality: the wealth gap has widened as the affluent have grown richer and the underprivileged have become poorer amidst soaring prices, particularly in housing and food.
While much attention has been on the alarming 8% inflation rate in 2022, the cumulative price hikes from 2020 to 2025 have been equally concerning. Over the past five years, from August 2020 to August 2025, prices in Quebec surged by 21.8%.
The scenario becomes more concerning when we dissect the components of the consumer price index. Housing costs surged by 31.4%, and food prices rose by 28.2%. These essential expenses accounted for half of the spending of the poorest 20% in Quebec (28% for housing and 22% for food) but only a quarter of the expenses for the wealthiest 20% (14% for housing and 8% for food).
Based on Statistics Canada’s 2023 Household Expenditure Survey, it’s reasonable to assume that the situation has deteriorated even further for the poorest households in the last two years.
These price hikes impact different income brackets unequally, as noted by economist Geoffroy Boucher, the author of the report. Lower-income individuals bear the brunt of rapid increases in food and housing costs, affecting a significant portion of their expenses, while wealthier households are less impacted.
Income disparities have also widened along economic lines. Quebecers’ disposable income increased by 19.3% between 2020 and 2024, influenced largely by a substantial rise in income among the wealthiest households.
The top 20% of earners saw a significant 51.4% jump in annual disposable income, while the poorest quintile experienced a nearly 2% decline in income.
The sudden spike in inequality post-pandemic has caught many off guard, with the economist highlighting the alarming trend towards historic levels of disparity, even after accounting for tax redistributions.
Overall, the report paints a concerning picture of escalating inequality in Quebec and Canada, with wealth disparities further exacerbated in recent years.
