You think you've seen it all? Think again. Even with a lot of willpower, your expenses will likely continue to increase. To convince you, here is an overview of the already announced price increases and tariffs that you will hardly be able to avoid. You might as well prepare for it. Tie on your hats.
• Also read: A first in history: In 2023, grocery store sales fell in Quebec while the population increased
Shopping basket on the rise
Food will continue to be heavily affected by inflation. Experts assume that the cost of shopping baskets will increase by 2.5 to 4.5 percent in 2024.
The biggest increases will be in baked goods, meat and vegetables. The price of these foods is expected to increase by 5 to 7% over the year.
For a family of four, two adults and two children, the cost of groceries could be $16,297. This represents an increase of $701.79, or 4.5%, compared to the same family's budget in 2023 ($15,595).
These forecasts come from the annual food price report. The document is expected every year and is the result of a collaboration between the universities of Dalhousie, Guelph, Saskatchewan and British Columbia.
Hydro-Québec: Electricity prices are rising
Tariff freezes appear to be a thing of the past at Hydro-Québec. On the eve of the resumption of major hydropower projects, Michael Sabia – Sophie Brochu's successor at the helm of the state-owned company – is making no secret of it.
The significance of the increases in 2024 has not yet been specified. But if a promise from Prime Minister François Legault is to be believed, residential property interest rates are unlikely to rise by more than 3% per year until 2035!
However, the increase could be more expensive for companies, Mr Sabia warned in the parliamentary committee. “An increase at certain levels for business customers? “Yes, that is very likely,” he said.
Local taxes are rising
Several municipalities have already warned of an increase in property taxes for the coming year. In Montreal, Mayor Valérie Plante announced an average increase of 4.9% for residential buildings and 4.6% for commercial buildings. In Laval and Longueuil, the residential tax increases are 4.8% and 5.8%, respectively.
In Gatineau and Sherbrooke, residents will see increases of 2.9% and 3.13%, respectively. In Quebec, Mayor Bruno Marchand announced an average increase of 3.9%, while in Lévis on the south coast the increase will reach 7.7%, the highest increase since 2002.
Contributions to Quebec's pension plan are increasing
Starting January 1, 2024, the maximum contribution to the Quebec Pension Plan (QPP) will increase by $620 to $8,696. This means that the Quebec government is giving us an increase of 7.7% compared to the maximum contribution for 2023.
If you are an employee, you will have to pay the amount of $4,348 into the QPP and your employer will do the same by paying $4,348 into your QPP. If you are self-employed, you must pay the entire premium, which is $8,696.
Unemployment insurance premiums are rising
Quebec's employment insurance premium rate and cap on insurable income will increase in 2024. That means employees will pay up to $834, while employers will pay $1,168 to Quebec employment insurance. Quebec in 2024. This represents an increase in employment of $53 insurance tax for employees and $75 for employers. Self-employed people cover the entire premium increase, i.e. $128.
Income taxes go down
In its most recent budget, François Legault's CAQ government cut the tax rate for the first two income brackets by one percentage point. For the Quebec division of the Canadian Taxpayers Federation (FCC), this means taxpayers will save up to $814 when they file their 2023 tax return. The FCC welcomes this first tax cut in twenty years, but at the same time rejects the general price increase that comes with it.
SAAQ: Driving licenses declining
For the third year in a row, the Legault government is giving motorists a discount. All you have to do is pay $25.50 to get your driver's license from the Société d'assurance automobile du Québec (SAAQ). For 2024, this represents a savings of $101.55 for holders of the most commonly used Class 5 license. Some regretted that this decision deprived Quebec of $600 million in revenue, a sum that could have been used for other purposes such as the development of public transport.
Local public transport: tickets on the rise
Because Quebec is underfunded, few carriers will be able to avoid price increases for their users in 2024. The Regional Metropolitan Transport Authority (ARTM), responsible for managing public transport in the Greater Montreal area, has given itself until May to announce its colors. Meanwhile, in Quebec, the Réseau de Transport de la Capitale (RCT) has already announced that it has no choice but to increase its fares this spring. Its president indicated that it would approach 2.5%.
The price shock will be felt more quickly elsewhere. From January 1st, the Société de transport de Sherbrooke (STS) will increase fares from 2% to 3%. The regular monthly pass increases from $2.50 to $87.50, while the under-21 pass increases from $64.50 to $66.50. The senior monthly rate increases by $1.25, while the family rate increases by $2. In Gatineau, Société de transport de l'Outaouais (STO) users will see their single ticket increase to $4.50 and the monthly pass increase to $110, an increase of $5 per month, or $60. dollars per year.
Travel: Airport costs are rising
Aéroports de Montréal, the operator of Dorval and Mirabel airports, confirms an increase in its Airport Improvement Fees (FAA). Starting March 1, the FAA will increase from $35 to $40 (plus taxes) for passengers departing from Montreal-Trudeau Airport. This is a 14.3% increase over the current rate. Meanwhile, Quebec Jean-Lesage Airport (YQB) announced that there will be no increase in airport improvement fees and general aviation fees in 2024 for the seventh consecutive year. Quebec Airport's FAA therefore remains at $35 plus tax.
Federal alcohol tax increases:
The federal excise tax on beer, wine and spirits increases on April 1 each year. The year 2024 will be no exception; The alcohol tax will increase by 4.7%. According to the Canadian Taxpayers Federation, this tax increase will cost Canadians almost $100 million in 2024. According to Beer Canada, this new tax increase will result in a price increase of $0.20 per bottle of beer compared to a case of 24 beers.
Have you observed any unusual price increases?
Write to us