Rising living costs make it difficult for those with lower incomes

Over the past year, the rise in the cost of living has been more brutal for those with a lower income, according to a new report.

The income needed to “live with dignity” has increased faster than inflation, according to a study by the Institut de recherche et d’informations socioéconomiques (IRIS).

“People living in poverty or on the verge of poverty have less room for maneuver,” said researcher Eve-Lyne Couturier. “It’s harder to arbitrate between the different categories of expenses and the most important expenses, notably housing and food, are categories which are very sensitive to inflation.”

In 2015, IRIS developed “sustainable income,” which is intended to be an alternative indicator to the poverty line.

This includes basic needs, and the expenses necessary to “live with dignity,” such as vacations, cultural outings and saving for emergencies.

IRIS measured the indicator in seven Quebec municipalities for three household profiles: a single person, a single-parent family, and a family of four.

The viable income threshold has increased by between 6.2 per cent and 19.3 per cent over the past year, according to the IRIS.

To live with dignity, a single person would need between $30,738 (Trois-Rivières) and $43,609 (Sept-Îles).

For a family of four, the necessary income is between $72,788 (Trois-Rivières) and $86,585 (Sept-Îles).

A family in Sherbrooke, for example, needs an income of $78,563 in 2024 to reach the sustainable income threshold.

This represents an increase of 15.3 per cent in one year.

A single person in Quebec needs $35,395, up 13.8 per cent compared to last year.

IRIS also revised its methodology, as it does every five years, to ensure its data is “as reliable as possible.”

For groceries, IRIS took price readings in all seven regions.

Previously, surveys were taken in Montreal and adjusted for other regions using other data.

“The 2024 data is much more representative of the cost of groceries,” she explains.

The IRIS report shows that the minimum wage is not enough to life people out poverty, Couturier points out.

In Montreal, a single person working a minimum wage job for 35 hours per week only gets 68 per cent of their viable income.

This person would have to earn $27 per hour to reach a sustainable income, according to IRIS.

The minimum wage will increase by 50 cents to $15.75 on May 1.

A 65-year-old senior who receives $16,000 from the Quebec Pension Plan (QPP), in addition to the Guaranteed Income Supplement (GIS) and the Old Age Security pension (OAS), but who has no retirement savings, meets only 75 per cent of the minimum viable income.

“We can that getting out of poverty is very demanding for people who are retired or working for a low salary,” concluded the researcher.

–This report by La Presse Canadienne was translated by CityNews