Quebecers end 2022 squeezed like lemons. Unfortunately, 2023 will not give them a break! Food, gasoline, electricity… The newspaper he took a look at what might cost him the most in the coming year.
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After an 11% increase in 2022, rising food prices will continue in 2023. They will increase by 5-7%, according to the latest “Annual Report on Food Prices”.yes published by four Canadian universities. According to the researchers, a family of four will have to pay $1,000 more per meal during the year. Dining out will also cost more. Restaurant menu prices increased 7% in 2022, according to a report by Restaurants Canada, and are expected to continue to rise in 2023.
The Quebec government has decided to limit Hydro-Quebec’s rate increase for residential customers to 3%. However, SMEs are excluded from this measure and will suffer an increase of 6.4%, an increase quite similar to inflation for 2022.
Inflation has increased municipal spending by 6% in 2022, according to the Union of Quebec Municipalities. The result: property tax increases throughout Quebec. Residential council taxes for Montrealers will increase an average of 4.1% in 2023. In Quebec City, the increase will be 2.5%, 2.6% in Lévis and 2.9% in Laval. Longueuil taxpayers will see their taxes increase by 5.6% in 2023 and Sherbrooke residents by 3%.
Just a few percentage points for your home insurance rate, the increase won’t be huge, explains Louis Cyr, insurance broker and risk manager. However, his home premium could rise substantially.
“Insurers will start raising the limits,” says Mr. Cyr. A house that was worth $200,000 a few years ago is now worth $300,000. Even if the rate does not increase, the premium will increase.
Keep in mind that the increases in the last three years have been substantial, on the order of 30 to 40%. Currently, the Quebec insurance market lacks competitiveness and insurer profits are at an all-time high, says Mr. Cyr.
When it comes to auto insurance, everything will depend on the price of auto parts, which has been increasing steadily lately. Will the year 2023 offer us a respite?
On the business side, we expect a continued increase. The global insurance market has to deal with more and more natural disasters.
Travel demand has been very strong, especially to Europe, this year. With the lifting of most sanitary measures, travelers wanted to make up for lost time. But the flight offer only reached 75% of its historical capacity. The effect on prices was felt: travel agents noted an increase in airfares.
In 2023, companies should restore 100% supply and demand should return to a more normal level. Result: no significant price increase. However, the inflation of the last years should not be reduced. Prices in the sector have increased between 15 and 20% between 2019 and 2022, according to Mr. Côté.
Quebec limits to 3% the increase of the main rates that are indexed to 1Ahem January 2023, that is, those corresponding to driver’s licenses and registration, the contribution paid in CHSLD and the contribution for an individual or semi-individual room in a temporary care hospital center. The contribution rate to the Quebec Pension Plan will increase by 0.5% in 2023. At the federal level, the employment insurance contribution rate will increase by 3%.
In June 2022, motorists paid a record price at the pump – more than $2.20 per liter! If the price has fallen again since then, several analysts believe the price could quickly rise again in 2023. Several factors are conspiring against motorists, including the ongoing war in Ukraine, the decline in the number of refineries in North America , the numerous fuel taxes and the unjustified increase in retail margins in some gasoline outlets. Analyst Dan McTeague predicted a liter at $2.30 in January 2023, on mtlblog.com.
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