Budgets Since 2020: The Average Household Kept Up, Younger and Lower-Income Ones Generally Didn't

Inflation has come down from its pandemic highs, but many households are still feeling the effects of higher prices. Between 2020 and 2025, the Bank of Canada notes, younger and lower-income households generally saw spending outpace income gains, while older and higher-income households fared better. Put those experiences together and income gains for the average household kept up with higher spending. The average is doing real work here: it holds precisely because two groups moved in opposite directions.