Inflation and higher interest rates have eroded Canadians’ purchasing power since 2022, particularly for lower-income households, a new report from the parliamentary budget officer has found.

But wealthier households have seen their purchasing power rise thanks in big part to their investment income.

Over a longer time period — since the last quarter of 2019 — the average purchasing power of Canadian households rose by 21 per cent.

For the lower-income households, “small increases in income were not enough to counteract the effect of inflation on their purchasing power.”