Canadians were able to go out and shop, dine and travel more than in 2020. The reopening was made possible as COVID -19 vaccines became widely available and public health restrictions began to ease. Inflationary pressures stemmed from a combination of widespread global supply chain constraints and pent-up consumer demand as the economy reopened. In 2021, the COVID -19 pandemic remained a key factor impacting the prices of goods and services purchased by Canadians.

Today, Statistics Canada released the infographic Consumer Price Index: 2021 in Review, highlighting annual average consumer price inflation in Canada and the regions in 2021 and showing the noteworthy average commodity price movements in the context of the COVID -19 pandemic. Prices for services increased 2.3% on an annual average basis in 2021, after a gain of 1.4% in 2020.Ĭheck out the 2021 annual review infographic

Prices for goods were up 4.7% on an annual average basis in 2021, following a decline in 2020 ( -0.2%). Prices for both goods and services rise at faster pace Price growth among the provinces was slowest in Saskatchewan (+2.6%).Īmong the territorial capital cities, annual average prices increased at the fastest pace in Whitehorse (+3.3%), followed by Yellowknife (+2.2%), while prices rose at the slowest pace in Iqaluit (+1.4%). Higher prices in all provinces and territorial capital citiesĪnnual average prices rose at the fastest pace in Prince Edward Island (+5.1%), followed by Nova Scotia (+4.1%). Clothing and footwear prices decreased 0.3% in 2021, the lone major component to fall over the past year. Seven of eight major CPI components up in 2021Īmong the eight major components, transportation prices (+7.2%) rose at the fastest pace. This marked the fastest pace since 1991 (+5.6%).Įxcluding energy, the annual average CPI grew 2.4% in 2021, a faster pace than in 2020 (+1.3%) and a slightly faster pace than in 2019 (+2.3%). The CPI rose 3.4% on an annual average basis in 2021, following an increase of 0.7% in 2020.

If you are an OPSRP member (hired after August 28, 2003) and your effective retirement date was on or after August 1, 2020, your COLA will be prorated based on the number of months for which you received a benefit before July 1, 2021.Highlights On an annual average basis, the CPI rises at the fastest pace since 1991.

Therefore, the COLA on your benefit earned prior to October 1, 2013, will be the actual CPI of 1.74%.

If you retired after July 1, 2020, you do not yet have a CPI carryover.

And if your annual benefit is more than $60,000, you will receive 0.15% COLA on benefits exceeding that amount.

1.25% on service credit earned after that date.

2% on service credit earned up to October 1, 2013..

If you earned service credit before and after October 1, 2013, your COLA will be calculated like this: Therefore, if you retired before October 1, 2013, you will receive a 2% COLA for 2021. In years when CPI is less than 2%, your CPI carryover is used to provide you with the maximum 2% COLA on benefits earned before October 1, 2013. However, in years that the CPI exceeded 2%, the excess was banked in what is called a CPI carryover. PERS uses the West Region CPI, which was 1.74% for 2020.įor service prior to October 1, 2013, the COLA increase is capped at 2%. The adjustments are limited to a maximum of 2% each year. Bureau of Labor Statistics for the prior year. These adjustments are based on a regional Consumer Price Index (CPI) set by the U.S. Into effect July 1, 2021, and will be included in members’ August 1, 2021, If you are a PERS member receiving a monthly pension benefit, you will soon see an increase in your benefit payments due to the annual cost-of-living adjustment (COLA).

Cost of living increase 2021