A new year often ushers in fresh hopes and opportunities, but it also brings the reality of rising costsICYMI Food Prices Set to Rise in 2025 Says Canada’s Food Price Report. While Canada’s inflation rate has slowed to just under two percent after peaking at 8.1% in June 2022, British Columbians will still face increased expenses in 2025. Here’s a breakdown of what’s expected to go up in price this year.
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Food Prices Are Climbing
Canada’s 2025 Food Price Report predicts families will spend approximately $800 more on groceries this year. With food prices expected to increase by 3-5%, here’s how specific categories may be affected:
- Meat: Prices are projected to rise by 4-6%.
- Vegetables: Expect a 3-5% increase.
- Baked Goods: Anticipated to go up by 2-4%.
For a typical family of four, annual grocery costs will rise to around $17,000, compared to $16,200 in 2024. Adverse weather conditions, such as droughts in beef-producing regions, are contributing to higher food prices.
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Electricity Rates Will Edge Up
Although B.C. Hydro has yet to finalize its rate adjustment for 2025, FortisBC customers in southern B.C. are already facing a 5.56% increase, adding an extra $7.88 to monthly bills. Moreover, a provincial electricity affordability credit, which saved residential customers about $100 over the past year, will expire in March 2025.
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Taxes on the Rise
- Property Taxes: Vancouver property owners will see a 3.9% hike in 2025.
- Home-Flipping Tax: A new tax penalizes home resales within two years. For sales in the first year, 20% of profits will be taxed, tapering to zero by the end of year two.
- Carbon Tax: Scheduled to rise by $15 per tonne in April 2025, adding about three cents per liter to gas prices.
- Alcohol Excise Tax: A 2% increase is set for April 2025.
- Payroll Deductions: Employees earning $81,200 or more will pay $403 more in Canada Pension Plan contributions.
Housing Costs: Mixed News
With inflation under control, the Bank of Canada is unlikely to change interest rates significantly in 2025. However, many of the 1.2 million mortgages renewing this year were originally locked in at lower rates of 2-3%, meaning some homeowners will face higher payments upon renegotiation.
For renters, the maximum allowable rent increase has been capped at 3%, slightly down from 2024’s 3.5%.
Transportation Costs: B.C. Ferries
Annual fare increases for B.C. Ferries will be capped at 3.2% until March 2028, thanks to a $500 million provincial subsidy. Despite this, rising operational costs, including fuel and labor, will still make travel slightly more expensive.
Waste Disposal Fees
As of January 1, garbage tipping fees in Metro Vancouver increased by $7 per tonne, representing a 4.2-5.8% hike depending on load weight. Yard trimming fees also rose by $5 to $118 per tonne.
How to Manage Rising Costs in 2025
While rising prices may seem daunting, proactive budgeting and seeking out energy efficiency programs or grocery-saving tips can help mitigate some of these increases. Staying informed about rate changes and exploring government subsidies or credits can also provide financial relief.
As 2025 unfolds, British Columbians will need to adapt to these cost increases while making the most of opportunities in the year ahead.
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