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This news post was originally published with April 2022 BC Consumer Price Index Summary data. It has been updated to reflect the recent release of May 2022 CPI Summary data.
BC alcohol prices are up significantly according to the June 2022 BC Stats Consumer Price Index Summary which reports May 2022 data. In May 2022, alcoholic beverage prices showed a 7.2% increase compared to May 2021. The annual inflation rate in Canada increased to 6.8% in April, the highest since January 1991.
While liquor prices in BC increased, British Columbians are also paying much more for almost everything.
The cost of groceries rose by 8.6%.
The cost of meals purchased from restaurants increased by 5.5%.
The cost of home ownership increased by 9.4% and renting by 5.5%.
Household furnishings costs went up 9.6%.
Recreation costs rose by 9.1%.
Personal care costs increased by 3%.
Last, but not least, gasoline prices climbed a whopping 42%!
These increased costs mean less expendable income, which may affect many BC liquor licensees including liquor stores, wine stores, restaurants, bars and lounges as consumers curtail unnecessary spending.
Bank of Canada Deputy Governor, Toni Gravelle, calls the current inflation a “The Perfect Storm” citing the pandemic, supply-chain disruptions, severe weather, “rapid bounce-back demand”, and the war in Ukraine as driving factors. Gravelle does see a brighter side (or at least a less dark side) to the current inflation. It’s not the “stagflation” of the 70s where high inflation, high unemployment, and slow economic growth occurred at the same time. Gravelle notes that Canada has strong economic growth and a record low unemployment rates. Bank of Canada has raised its interest rates twice this year in an effort to curb excess demand and bring it balance with supply, which should reduce inflation.
Increased Costs Hurting Your BC Liquor Business? Talk to a BC Liquor Consultant
We live in “interesting times” as the saying goes, but now isn’t the time to panic. It’s the time to plan! If you’d like to review how your BC liquor store, wine store, bar or restaurant can reduce expenses and increase revenue, talk to the BC liquor consultants at Thrive Liquor & Cannabis Advisors.