Consumer insolvencies rise 22.5 per cent compared with last year

Statistics Canada says consumer insolvencies rose 22.5 per cent in the third quarter compared with a year earlier, marking the largest percentage increase in 13 years.

The federal agency says consumer insolvency filings increased 2.3 per cent quarter over quarter.

However, consumer filings were down 25.5 per cent compared with the third quarter in 2019.

Bankruptcy filings by both businesses and consumers were down throughout the pandemic because of government subsidy programs.

But filings have been rising steadily as subsidies ended, inflation persists and interest rates have been increasing rapidly.

Inflation in September was 6.9 per cent.

This report by The Canadian Press was first published Nov. 9, 2022.