Canada is famous for many things: Poutine, hockey, ketchup chips—and high, high prices.
According to The National Post, Canadians are paying a serious premium for products, including mobile plans, grocery hauls, and some basic services. Let’s unpack.
Mobile plans: Prices in the Canadian wireless market continue to be the highest (or among the highest in the world), according to telecom analyst Rewheel.
- Why it’s happening: Three companies control more than 90% of the market, and federal regulations make it difficult for new competitors to enter the sector.
Airfare: The average international airfare from Canada this year is $960, up 15% compared with 2019, according to data collected by Hopper.
- Why it’s happening: WestJet or Air Canada controls most air travel, there’s no direct foreign competition, and Canadian airports are the world’s most expensive.
Housing (obviously): Canada is tied with Portugal and the Netherlands for the worst housing price-to-income ratio in the developed world, according to recent OECD data.
- Why it’s happening: Canada has a chronic housing shortage after years of cheap mortgages pumped up demand, and red tape made it difficult to build new housing.
Bottom line: Canada is hardly the most expensive country, but in a few key sectors, a combination of dysfunctional regulations and limited competition has lifted prices to well above global averages.