Thanks, Laura.
Of course, as you mentioned, things are more expensive now than they were in 2021. We also believe that this would help catch up to the increased costs that seniors on fixed incomes face. The economic circumstances today have changed since the government first introduced the allowable amount for seniors over 75 in July 2022. Things are more expensive now than they were when this was made in 2021.
For instance, the Bank of Canada increased inflation rates 10 times between May 2022 and July 2023. That's a span of a little more than a year. In 2022 alone, prices for day-to-day basics rose sharply. For example, transportation rose by 10.6% and food increased by 8.9%, while shelter increased by 6.9%.
Seniors, of course, experience inflation and costs differently. StatsCan found that seniors spend proportionally less on transportation, gasoline or a new car, but spend way more on housing and food. In 2005, it was found that for every $100, they spend $56, compared to $45 for all other households.
Also, how we measure poverty does not accurately reflect the real costs that seniors face. In particular, the market basket measure is under review. Currently, the MBM threshold looks at family disposable income, but many of the costs that seniors are facing are not counted. For instance, health care costs are not included.