It’s no secret that the growing cost of living has left many British Columbians feeling the pinch in 2024. With the new year approaching, 2025 is shaping up to deliver another round of financial pressures. Prices on fuel, housing, food, and transportation are all expected to rise again. However, there are a few silver linings that could help ease the burden for some residents.
Table of Contents
What Will Cost More in 2025
Food
The 2025 Canada Food Price Report predicts that Canadians will pay between 3% and 5% more for food this year. Assuming the high estimate, a family of four could spend over $16,833 on food in 2025, an increase of $801.45 compared to last year. The report attributes these increases to factors like climate events, labour disputes, new policies, the U.S. election, and exchange and interest rates.
- Meat: Prices are expected to rise by 4% to 6%.
- Vegetables and restaurant meals: Increases of 3% to 5% are anticipated.
- Seafood and fruit: The smallest increases, between 1% and 3%, are expected.
On the positive side, B.C.’s food inflation in 2024 came in at 2.8%, below the national average, and projections for 2025 indicate that increases will remain modest in the province.
Big Tax Breaks Coming for British Columbians: How to Maximize Your Savings over Holiday Season
Canada Carbon Rebate: January 2025 Payment Date and Full Quarterly Schedule
Rising Grocery Bill Predicted $800 for Canadian Families in 2025
Housing
Housing costs are set to climb further in 2025:
- Rent: The maximum allowable rent increase in B.C. will rise to 3%.
- Home prices: The BC Real Estate Association estimates a 3.3% increase in the average selling price of homes.
- New home-flipping tax: Beginning January 1, 2025, those selling a home within a year of purchasing it will face a 20% tax on profits, dropping to 10% after 18 months and 0% after two years.
- Property taxes: Rates will vary across municipalities, with Vancouver set to increase by 3.9%.
- Utility fees: Metro Vancouver homeowners will see a significant 25.3% average hike in utility fees, largely driven by cost overruns on the North Shore Wastewater Plant.
Energy
Energy costs will also rise in 2025:
- Carbon tax: Scheduled to increase on April 1, raising the tax on gasoline from 14.51 cents per litre to 20.91 cents per litre.
- Natural gas: FortisBC rates will rise by 5.65%, adding about $7.88 to the average monthly bill.
- BC Hydro: Rate changes are still under review for 2025.
ICYMI Food Prices Set to Rise in 2025 Says Canada’s Food Price Report
Dollar’s Decline Post-Trump Win Likely to Push Food Prices Higher
Transportation
Transportation costs are expected to increase:
- Transit fares: BC Transit will raise single-ride fares by 20% (from $2.50 to $3) and day passes from $5 to $6 starting April 1. TransLink fares will increase by 4% on July 1.
- BC Ferries: Fares will rise by 3.2% on April 1.
Is Canada Heading Toward a Recession?
Financial Relief in 2025
While costs are increasing, there are some financial relief measures that could help British Columbians in 2025:
GST Holiday
The federal government’s GST holiday, effective December 14, 2024, will save residents 7% on select items until February 15, 2025. This includes prepared foods, non-alcoholic drinks, kids’ items, toys, physical video games, and books.
B.C. Tax Rebate
The B.C. government plans to roll out tax rebates of $500 for individuals and $1,000 for families in 2025. Exact timing is yet to be announced but is expected during the spring legislative session.
Carbon Tax Rebates and Family Benefits
Enhanced rebates and benefits introduced in 2024 will continue in 2025:
- Carbon tax rebate: Maximum payouts increased to $504 for individuals, $252 for spouses, and $126 per child.
- Family benefits: Average families will see $445 more, with a family of four receiving about $1,760 and single-parent families around $2,790 during the bonus period.
Mortgage Affordability
New federal rules will make home buying more accessible:
- Insured mortgage cap: Increased from $1 million to $1.5 million.
- Amortization period: Extended to 30 years for first-time and new-build homebuyers, reducing monthly payments.
Interest Rate Cuts
The Bank of Canada’s recent rate cuts have reduced its key interest rate to 3.25%, significantly easing financial pressure on mortgage and other debt holders compared to last year.
Looking Ahead
While 2025 brings its share of financial challenges, proactive measures by the federal and provincial governments offer some relief. By staying informed and taking advantage of these opportunities, British Columbians can better navigate the rising costs.
Leave a Reply