Still, the report stressed that “there are many Canadians who will feel the concept of resilience is a poor description of the economies they experience,” as the country split into “trade‑hit and trade‑insulated regions.”
“Canada’s affordability crisis is hurting some much more than others,” the analysis said, pointing to essentials.
Since early 2020, prices in the Consumer Price Index have risen about 20%, “below wage increases of 25% over the same period—suggesting some real income growth.”
But RBC noted that “prices for essentials including food and housing have grown much faster, both at about 30%, well outpacing wage growth.”
Affordability pressures for homeowners
RBC observed that the Bank of Canada cut rates four times in 2025, for a total of 275 basis points since 2024, which “helped reduce the mortgage refinancing shock for homeowners, and debt burdens of many Canadians.”