How $100 from 2015 is now worth only $76 — and why nobody sends you the bill?
Your basic grocery basket — milk, bread, butter, eggs, cheese, apples — cost about $18 in 2015. Today, the same products run over $28. That's more than a 55% increase for the exact same items, on the same shelves. And it's not just groceries: gas, rent, coffee, even Canadiens tickets — everything has gone up.
Inflation is an invisible tax that eats away at your savings 24 hours a day, 365 days a year. Unlike income tax, nobody sends you a notice of assessment. Inflation works in silence — and that's exactly what makes it so dangerous.
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We're going to break it all down together. With real numbers, real Quebec examples, and zero incomprehensible jargon.
What is inflation, in practical terms, and how does Statistics Canada measure it?
Inflation is the general rise in prices across the economy over time. When we say "inflation is at 3%," it means that on average, goods and services cost 3% more than a year ago.
Statistics Canada measures this using the Consumer Price Index (CPI). Think of the CPI as an economic thermometer. To calculate it, Statistics Canada tracks the prices of over 700 products and services (source: Statistics Canada, CPI) — food, housing, transportation, clothing, recreation, healthcare, even your haircut and your Netflix subscription.
Why don't all prices rise at the same rate?
The CPI is a weighted average. Since 2015:
- Food has increased by about 40% (source: Statistics Canada, food CPI)
- Housing has jumped by 45% or more, especially in major cities
- Transportation has climbed by about 35% (gas, insurance, vehicles)
- Electronics have dropped by about 10% (your phone does 10 times more)
- Clothing has remained relatively stable
Your personal inflation depends on your spending habits. If you're a renter in Montreal and you eat out often, your real inflation is probably much higher than the official figure.
What was the year-by-year inflation rate in Canada from 2015 to 2025?
Here are the concrete numbers. The "cumulative" column shows the total accumulated effect — it's the most important column in the table.
| Year | Inflation (CPI) | Cumulative inflation since 2015 |
|---|---|---|
| 2015 | 1.1% | 1.1% |
| 2016 | 1.4% | 2.5% |
| 2017 | 1.6% | 4.2% |
| 2018 | 2.3% | 6.5% |
| 2019 | 1.9% | 8.5% |
| 2020 | 0.7% | 9.3% |
| 2021 | 3.4% | 13.0% |
| 2022 | 6.8% | 20.7% |
| 2023 | 3.9% | 25.4% |
| 2024 | 2.4% | 28.4% |
| 2025 | 2.1% | 31.2% |
(Source: Statistics Canada, CPI table 18-10-0005-01)
The result: between 2015 and 2025, prices rose by a total of 31.2%. What cost $100 in 2015 costs about $131 today. Your 2015 dollar is now worth about 76 cents. The year 2022 was the worst in 40 years in Canada with inflation of 6.8%.
How do you calculate the real value of your money after inflation?
The formula is simple:
Real value = Amount / (1 + cumulative inflation)
Example: $10,000 left under the mattress since 2015: - Cumulative inflation: 31.2% (0.312) - $10,000 / 1.312 = $7,622
Your $10,000 now only buys the equivalent of $7,622 in 2015 dollars. Loss of purchasing power: $2,378 — without doing anything, without spending anything.
How Jean from Sherbrooke lost $5,800 despite 11 years of discipline?
Let's take Jean, 35, an IT technician at a small business in Sherbrooke. He earns $62,000 a year, has no credit card debt, and since January 2015, he has faithfully put $200 per month into his savings account.
Over 11 years, Jean deposited $26,400 ($200 x 12 x 11). With interest averaging 1.5%, he accumulated about $2,400 in interest. His balance proudly shows $28,800.
But for each of his $200 deposits to buy as much as the day he deposited it, he would need about $34,600. The $200 he deposited in 2015 had $200 in purchasing power. That same $200 today only buys the equivalent of $152 in 2015 dollars.
Jean's real loss: about $5,800. Jean was running on a treadmill for 11 years — he was moving forward by saving, but inflation was pulling the ground out from under his feet. It's not because Jean did anything wrong. It's because his savings tool wasn't suited to the enemy he was fighting.
Why is your savings account return actually negative?
You look at your savings account rate — say 1.5% — and think "at least my money is working a little." But if inflation averages 2.8%, your real return is -1.3% per year. Your money isn't working for you — it's melting away.
Which savings vehicle actually beats inflation?
Here's how much you actually lose or gain each year for every $10,000:
| Vehicle | Average return | Average inflation | Real return | Gain or loss per $10,000/year |
|---|---|---|---|---|
| Regular savings account | 1.5% | 2.5% | -1.0% | -$100 |
| 1-year GIC | 3.0% | 2.5% | +0.5% | +$50 |
| 5-year GIC | 3.8% | 2.5% | +1.3% | +$130 |
| Invested TFSA (balanced portfolio) | 6.5% | 2.5% | +4.0% | +$400 |
| Invested RRSP (growth portfolio) | 8.0% | 2.5% | +5.5% | +$550 |
Over 10 years, the difference between a savings account and a well-invested TFSA in a diversified portfolio: $5,000 per $10,000. On $50,000 in savings, that's a $25,000 difference.
A savings account remains excellent for your emergency fund — money accessible within 24 hours. But for long-term savings, it's the wrong tool for the challenge.
How does inflation affect your major life goals?
Inflation doesn't just affect your bank account. It impacts all your goals — big and small.
How much will your retirement cost in 10, 20, or 30 years?
If you estimate you need $50,000 per year to live comfortably in retirement today, with inflation at 2.5% per year (close to the Bank of Canada target):
- In 10 years: $64,000 per year for the same standard of living
- In 20 years: $82,000 per year
- In 30 years: $105,000 per year
If your plan calls for fixed income of $50,000 with no adjustment, you'll run out of money by your fifth year of retirement.
How much will your children's education cost in 10 years?
A 4-year bachelor's degree costs about $30,000 today. In 10 years: $39,000. In 15 years: $45,000 — that's 50% more. An RESP with 20% CESG grants and a good return can offset this. Money under the mattress cannot.
Why does inflation actually work in your favour on your mortgage?
Good news for homeowners: your fixed-rate mortgage is a fixed-amount contract. If your payment is $1,500/month, it stays the same for the entire term. But with inflation, your income rises, and your payment represents an ever-smaller share of your budget.
In real dollars, your $1,500 payment today will be equivalent to about $1,320 in purchasing power in 5 years. Inflation erodes your debt just like it erodes your savings — except when it's your debt that's shrinking, you're the one who wins.
4 concrete actions to beat inflation in 2026
Action 1: How to separate your savings by time horizon?
- Short term (0-2 years): high-interest savings account or cashable GIC — your emergency fund accessible within 24 hours. Complete a full financial assessment to determine the right amount.
- Medium term (2-5 years): term GIC or bonds — more return, capital protected.
- Long term (5 years and more): diversified investments in a TFSA, RRSP, or non-registered account. This is where you actually beat inflation.
Action 2: Why invest and not just save?
Saving means putting money aside. Investing means making that money grow faster than inflation. It's the only way to move forward instead of running on a treadmill. Check out our portfolio comparison to find the risk level that suits you.
Action 3: Why should you negotiate your salary every year?
If your salary doesn't increase by at least 2 to 3% per year, you're taking a real pay cut — even if the number on your pay stub doesn't change. If your employer has refused any raise for 3 years, you've accepted a ~8-9% cut without even realizing it.
Action 4: Why review your financial plan every year?
The 6.8% inflation in 2022 was predicted by no one. Your financial plan needs to adapt to reality, not stay frozen in projections from 5 years ago. An annual review with an advisor makes all the difference — you adjust the sails according to the wind, not according to the weather you were hoping for.
In summary: 7 takeaways about inflation in Canada
- Inflation reached a cumulative 31.2% between 2015 and 2025 in Canada
- Your basic grocery basket has increased by more than 55% in 10 years
- $10,000 with no return in 2015 now buys only $7,622 worth of goods today
- Jean saved $200/month for 11 years and still lost $5,800 in purchasing power
- A savings account at 1.5% gives a real return that's negative at -1.3% per year
- Inflation affects your retirement ($50,000 becomes $105,000 in 30 years) and all your long-term goals
- The solution: invest your long-term savings in vehicles that outpace inflation (TFSA, RRSP, diversified portfolios)
What is your next concrete step?
You now know that inflation is a silent tax working against you every day. There's only one thing missing: action.
Option 1: Take the 7 Pillars Scan (free, 5 min)
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FAQ — Frequently asked questions about inflation in Quebec
Updated March 2026 — Cumulative CPI 2015-2025: +31.2%. 2025 inflation: ~2.1%. CPI ~2.3% forecast for 2026.
1. What is inflation and how is it measured in Canada? Inflation is the general rise in prices. Statistics Canada measures it using the Consumer Price Index (CPI), which tracks over 700 products and services in a "reference basket." The CPI is published monthly (table 18-10-0005-01).
2. How much has inflation cost Canadians since 2015? Cumulative inflation from 2015 to 2025 is 31.2%. In practical terms, $100 in 2015 now buys only the equivalent of $76 today. For a family with $50,000 in uninvested savings, that's about $11,900 in lost purchasing power.
3. Why have groceries increased more than official inflation? The food CPI has climbed about 40% since 2015, well above the overall CPI of 31.2%. Food is one of the hardest-hit categories, along with housing (+45%) and transportation (+35%). Your personal inflation depends on your spending habits.
4. Does my savings account beat inflation in 2026? Probably not. A typical savings account offers about 1.5% interest, while average inflation is about 2.5%. Your real return is -1.0% per year — you're losing $100 in purchasing power per year for every $10,000. A TFSA invested in a balanced portfolio (return ~6.5%) provides a positive real return of +4.0%.
5. How much is needed for retirement if inflation continues? If you need $50,000 per year today, you'll need about $64,000 in 10 years, $82,000 in 20 years, and $105,000 in 30 years to maintain the same standard of living — at 2.5% annual inflation (Bank of Canada target).
6. Will inflation decrease in 2026 in Canada? The Canadian CPI is estimated at about 2.3% for 2026 (Statistics Canada), close to the Bank of Canada's 2% target. That's significantly better than the 6.8% of 2022, but the erosion of purchasing power continues — it's just slower.
7. Why is inflation sometimes good for homeowners? A fixed-rate mortgage is a fixed-amount contract. Inflation drives up your income (salary adjustments) while your payment stays the same. In real dollars, a $1,500/month payment will be equivalent to ~$1,320 in 5 years. Inflation erodes your debt — and when it's your debt that's shrinking, you win.
8. How can you protect your savings against inflation in 2026? Three key strategies: (1) separate your savings by time horizon — emergency fund in a savings account, long-term in diversified investments; (2) invest in a TFSA or RRSP with a portfolio that beats inflation; (3) negotiate salary increases of at least 2-3% per year. Our 7 Pillars Scan identifies your priorities in 5 minutes.
9. What is the difference between inflation and loss of purchasing power? Inflation measures only the rise in prices. Loss of purchasing power combines inflation with other factors like demographic dilution (GDP shared among more people). As explained in our guide on purchasing power, the total loss reaches -23% — much more than the 31% inflation alone would suggest.
10. How much would Jean have earned if he had invested instead of saving? Jean accumulated $28,800 by saving $200/month at 1.5% over 11 years. If he had invested in a balanced portfolio at 6.5% (through a TFSA), he would have about $39,500 — that's $10,700 more. And in real purchasing power, the difference is even greater: ~$16,500.
11. What is the current inflation rate in Quebec in 2026? The CPI was about 2.3% in January 2026 (Statistics Canada), close to the Bank of Canada's 2% target. That's significantly better than the peak of 6.8% in 2022, but over 10 years, cumulative inflation has eroded ~24% of purchasing power ($100 from 2015 = ~$76 today). Take the 7 Pillars Scan to see the impact on your situation.
12. How does inflation affect my TFSA or RRSP savings? Inflation eats into the real return on your investments. If your TFSA generates 6.5% and inflation is 2.5%, your real return is +4.0% — you're building real wealth. But if your TFSA or RRSP is sitting in a savings account at 1.5%, even the tax advantage doesn't compensate: your real return is negative (-1.0%). The tax vehicle (TFSA, RRSP) matters, but it's the investment inside it that determines whether you beat inflation.
This article is for informational and educational purposes only. It does not constitute personalized financial, tax, or legal advice. The figures presented are illustrative examples based on historical data and reasonable return assumptions. Past returns do not guarantee future returns. Consult a licensed financial advisor for recommendations tailored to your personal situation.
Sources and methodology
Data verified as of March 2026. This article is updated annually.
Data sources: - Statistics Canada — Table 18-10-0005-01 (CPI, inflation) - Bank of Canada — Inflation calculator and inflation-control target
Calculations: Purchasing power erosion calculations use official CPI data from Statistics Canada. The real cost of savings is calculated by subtracting the inflation rate from the nominal interest rate. Retirement projections use the formula FV = PV x (1+i)^n with a hypothetical constant inflation rate.
* The names and situations presented in this article are entirely fictitious and used for illustrative purposes only. Any resemblance to real persons is purely coincidental.
Past returns are not indicative of future returns. Projections and numerical examples are presented for illustrative purposes only and do not constitute a guarantee of results.
The calculations and data compilations were produced by Lawrence Shaw and verified with the assistance of artificial intelligence tools using official sources.
This article is published for informational and educational purposes only. It does not constitute personalized financial advice. The information presented is of a general nature and does not take into account your personal situation. Consult your financial security advisor for recommendations tailored to your situation.
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