Rising costs for food and housing have been highlighted as key factors contributing to the affordability crisis. However, recent data from the consumer price index (CPI) indicates that the expenses for maintaining good health have also significantly increased since the peak of overall inflation in June 2022.
The surge in health-care expenses may not be as noticeable to many Canadians, experts suggest. This is partly due to the coverage provided by the public health-care system, which is not factored into the CPI data, and also because out-of-pocket health expenses are often sporadic.
While expenses like rent and groceries are recurring and prominent in people’s budgets, costs related to health care have been on a notable upward trend in recent years, according to Andrew Longhurst, a senior researcher at the Canadian Centre for Policy Alternatives (CCPA).
The overall inflation rate, as measured by the all-items CPI, has increased by slightly over 11% since June 2022. In comparison, the category encompassing health and personal care has risen by just over 15% during the same period, trailing behind shelter costs (over 16%) and food prices (almost 19%).
Specific health-care services such as dental care and eye care goods have experienced a substantial price hike of 20% since June 2022. These services exemplify the divide between public and private sectors in the health-care industry, where costs are predominantly controlled on the private side.
Statistics from Canada reveal that the prices of health-care services have consistently outpaced overall inflation long before the COVID-19 pandemic. This trend is attributed, in part, to the nature of health and dental services, which involve significant skilled labor costs and limited efficiency gains.
The Canadian Dental Care Plan was introduced in 2024 following the inflation peak in 2022, yet dental care CPI numbers have continued to rise. The plan has potentially contributed to increased demand in a sector facing skilled labor shortages.
Despite the significant impact of health-care price inflation, many Canadians may not be fully aware of it, given the substantial coverage provided by the public system. Private spending on health care has been increasing, with Canadians increasingly bearing a larger portion of the financial burden.
Longhurst cautioned that the escalating costs could disproportionately affect individuals who are less financially resilient, leading to disparities in access to essential care based on income levels. Without intervention from government bodies, these gaps in access to care are likely to widen, posing challenges for healthcare accessibility across the country.
