By Kelsey Bent | Listowel Banner
Down slightly from the year before, Perth County council set its cost of living increase for next year at 3.13 per cent.
According to the report by Corey Bridges, Director of Finance / Treasurer, presented by Daniel Hubbard, Senior Financial Analyst / Deputy Treasurer, the 2025 Cost of Living Adjustment (COLA) will take effect January 1, 2025. Council passed the motion to approve the increase to allow it to be incorporated into the 2025 budget.
“The annual Cost of Living Adjustment (COLA) to the salary grid follows a standardized process outlined in the County of Perth’s Human Resources Policy,” Bridges wrote. “The calculation is based on the average of the ‘total CPI’ (Consumer Price Index) for the preceding twelve-month period ending June 30, 2024.”
Hubbard told council last year’s cost of living adjustment was 5.63 per cent, while this year it equals 3.13 per cent.
“Inflation continues to be on the higher side, but inflation rates have been more level for the 2023/2024 period,” Hubbard explained.
According to the report, inflation was at its lowest over the past 12 months in June 2024 with a rate of 2.7 per cent.
“The inflation rate will likely continue to decrease over the next 12 months with Bank of Canada likely looking to cut interest rates to assist in maintaining inflation at achieving its 2 per cent target, which is estimated to occur by the mid-2025,” Hubbard said.
The report stated the Bank of Canada aims to keep inflation at 2 per cent, which is the midpoint of the 1 to 3 per cent inflation-control target range.
Council passed a motion, moved by Coun. Todd Kasenber and seconded by Coun. Matt Duncan, to receive the report and approve the rate as an increase to the non-union salary grid and remuneration for members of council and committees effective January 1, 2025.
