Cost-of-living crisis

A cost-of-living crisis refers to a socioeconomic situation or period of high inflation where nominal wages have stagnated while there is a sharp increase in the cost of basic goods, such as food, housing, and energy.

This is in contrast to a situation in which wages are rising to meet the rate of inflation and workers' standard of living remains unchanged.

Cost-of-living crises have had significant and wide-ranging negative consequences for mental and physical well-being.

[8][9] Mental health also declines across the board due to the stress of being unable to afford to live properly.

People are also more likely to lose sleep, forego meeting with friends, not engage in their hobbies, and skip out on exercising.

[19] In 2022, The Guardian reported that numerous countries were being impacted by a cost of living crisis, including Belgium, Germany, India, Nigeria, Philippines, South Africa and Taiwan.

[21] In 2024, CBC News reported many Canadians were struggling amidst rising living costs and working multiple jobs.