How Islanders are trying to beat back record inflation

Inflation numbers for March were released this week and once again P.E.I. is in the lead — and that's not a good thing. 

Statistics Canada reported "price growth was most pronounced in Prince Edward Island" at 8.9 per cent — that means your money bought almost nine per cent less than it did last year. Nationally, inflation rose 6.7 per cent. 

With less money in their pockets, how are Islanders adjusting their spending? We asked people to comment via Facebook.

Robert Hill of Charlottetown said he had been looking at purchasing a new home "but not anymore, don't want to be mortgage poor." 

Richard MacCallum of Slemon Park says he is doing several things differently: "Buying in bulk to take advantage of sales. Not eating out, cycling more and driving less."

Paul Ness of Cornwall is also "driving less, drinking less, eating out or takeout less."

"Driving an EV. Thank goodness for that because buying gas can really cut into the grocery money," wrote Carole Macfarlane of Kensington. She said her family got a good deal on a used electric vehicle before demand recently soared. 

"People don't realize that a large per cent of your car payment comes from not buying gas. Commuting adds that bill up quickly."

Moving away from meat

Margot Rejskind of Charlottetown says she has been buying less meat for her family's meals. 

"I drive a hybrid and like to walk if I can anyway, so the main place to save is food," Rejskind said. "We love tofu in almost any variation ... We also love beans as a meatless protein. I do a white bean and cheese bake that I could honestly eat every day.

"Breaking up with meat is slow and painful, but we're getting there. (Still a Sunday roast, though, and leftovers during the week)."

Karen Mellish-May of Summerside says she saves money on groceries by making her own tofu from soybeans. 

"Incredibly cheap and way better than the commercial stuff," she comments, while noting it is quite difficult unless you have an automatic soy milk maker.  

Your wealth is not so much the number of zeroes in your bank account as what you can buy with the money you have in your bank account.— Renaud Brossard

"And like bread, you have to be in a good mood for it to turn out," she added. 

Many people said they have been looking harder for deals at the grocery store.

"Paying a lot more attention to flyers," wrote Norbert Stewart of Charlottetown. 

Several people including Sara Bryanton say they are using Reebee, an online app that shares sale flyers. 

"Not eating out as much either. The only luxury I'm still allowing is once a week movies at Cineplex with Dad. Not ready to give that up yet," Bryanton said. 

"I cut down on empty calories and there is no meat or fish on my next grocery list," said Linda Wigmore of Charlottetown.

Working more and differently

Maurice "Moe" Hashie of Summerside says, "Most people will need a second job. It's what I have done."

Mark Ashley of Cornwall says he has taken on more work, too, and Rose Viaene says she is also working more hours to make up the shortfall. 

Katherine Bryson and her husband run Bryson Family Farm in Iona, where they added a bakery a few years ago. She says they are pivoting their business slightly again. 

"Reducing driving has been a big chunk. Putting a huge focus on the garden this year, where in the past it's just been a hobby. As a family that already lives quite frugally it's been difficult to find areas to really purge from," Bryson said. They are also switching to electric heat with solar panels. 

'Government is taking an increasingly larger share'

The Canadian Taxpayers Federation says the P.E.I. government could be doing more to help Islanders. 

P.E.I. is one of few provinces — including Alberta and Nova Scotia — that do not index income tax brackets to inflation, which means that as inflation rises Islanders may be paying more in taxes as well as everything else. 

"Right now the government of P.E.I. taxes you as if your dollar went as far as it did in 2008," said Renaud Brossard in an interview from Montreal with CBC News: Compass host Louise Martin earlier this week, noting 2008 is the last year P.E.I. indexed tax brackets. 

"Your dollar doesn't go as far but you get taxed more and more and more every year, so for anybody that has only got a cost-of-living adjustment for the last couple of years, the government is taking an increasingly larger share every year of their income." 

Brossard gave the example of a person making $50,000 and says if tax brackets had been indexed since 2008, that person would have saved $454 on their income taxes this year. 

"That adds up to significant money over the years," he said. 

"Your wealth is not so much the number of zeroes in your bank account as what you can buy with the money you have in your bank account.

"The government is making it so you have less and less disposable income," Brossard said. 

The province says it is addressing bracket creep in other ways. 

P.E.I.'s Department of Finance told CBC News via email "it is difficult to compare our provincial taxation framework to that of Ontario, Quebec, or the western provinces due to their much different economies, populations, and income levels.

"Looking across the Atlantic provinces, we are proud to offer the highest basic personal [exemption] amount in the region and will continue to monitor other provincial bracket levels to ensure that our overall tax framework remains comparable to our neighbours."

The email noted the province plans to increase the basic personal tax exemption 6.7 per cent to $12,000, effective January 2023. It says this measure, combined with the low-income tax reduction threshold that was raised to $20,000 (from $19,000) in January 2022, "will ensure that Islanders keep more money in their pockets, as we continue to take action with the intention of eliminating bracket creep."

In question period Thursday, P.E.I. Progressive Conservative MLA Cory Deagle pressed Finance Minister Darlene Compton on tax relief for Islanders facing record inflation, asking if the minister would index tax brackets to inflation. Compton said the Finance Department was looking at that option — a move praised by the taxpayers federation on Friday.

"While we're holding our congratulations for when legislation gets passed, the fact the government whip raised the issue of bracket creep with the finance minister shows a high level of commitment from the provincial government," said Brossard.

"Now is the right time to stop these stealthy tax hikes."