Do not use a slower inflation rate as a proxy for improved household affordability.
The official record
Statistics Canada’s annual review reported average CPI growth of 2.1% in 2025, following 2.4% in 2024. It also reported that prices were 19.9% higher than five years earlier. These measures describe different time horizons, and both are relevant to interpreting the year.
From a statistic to a research question
The annual average describes the overall change in the index. A household’s experience depends on its spending mix and resources. Our interpretation is that affordability research should include an assessment of financial room, rather than treating the inflation headline as a direct reading of consumer confidence.
What we would measure next
A useful study would ask whether respondents can meet regular expenses, absorb an unexpected cost and make planned purchases. It would keep these measures separate from perceptions of the national economy. Comparing them across time would require consistent wording and a comparable sample. This article is retrospective secondary analysis, not an original Northbound household survey.
Evidence note. This retrospective was first published on 25 October 2026. Its period label refers to the underlying event or data, not an earlier publication. Source material may include final figures published after the period covered. Northbound’s interpretation is identified separately from reported findings. Read our publication policy.