Canada Mental Health Market: High Inflation Rates Impact Almost Every Aspect of Our Lives, Including Mental Health

Recently, it feels as if every purchase serves as a reminder of inflation. Things that used to seem affordable have suddenly become unattainable or shocking as the cashier rings them up. If all this talk of inflation is confusing and overwhelming, you are far from alone.

So, what exactly is inflation? The International Monetary Fund defines inflation as “the rate of increase in prices over a given period of time.” Inflation can be considered a broad determination of many goods and services or only specific ones at a time.

The global mental health market was valued at $383.31 billion in 2020, and is estimated to reach $537.97 billion by 2030, growing at a CAGR of 3.5% from 2021 to 2030.

• The COVID-19 pandemic disrupted supply chains, and companies can charge a higher amount for their goods.
• There is a labor shortage, which allows people to ask for a higher wage, and costs more to the company.
• Russia’s horrific invasion of Ukraine has meant more countries competing for oil from the Middle East instead of buying from Russia.

Inflation’s Impact on Mental Health 

It’s easy to feel overwhelmed and worried when inflation increases faster than expected. According to Kara Nassour, a licensed professional counselor with her own private practice, inflation has two main effects on mental health: financial stress and uncertainty. 

“It decreases the power of the money you have, which can increase stress around finances. Financial stress can create chronic anxiety, exhaustion, strained relationships with partners, and prevent a person from getting housing, education, or healthcare,” says Nassour. “Poverty itself can be traumatic.” These issues can be further exacerbated for single-parent families and others facing a significant drop in their standard of living.

Nassour adds that this stress around expenses couples with the mysterious nature many people feel around inflation. “Most people don’t know why it happens, how to stop it, or how fast it will rise,” she explains. “This makes it difficult to plan for the future or save money for future purchases like college or a home. In ‘hyperinflation,’ the value of money drops so quickly that people start withdrawing from their bank accounts and buying goods to sell later because they’re afraid their savings will become worthless. That leads to an increased sense of instability, anxiety, cynicism, and loss of trust in the government.” 

Key Takeaways:

• Last month inflation reached 9.1%, a four-decade high.
• When the value of people's money decreases, it impacts how much they can spend and their overall stress levels.
• Some financial tips may lower your anxiety and help as you move through this tricky time.

Financial stress can create chronic anxiety, exhaustion, strained relationships with partners, and prevent a person from getting housing, education, or healthcare,

— KARA NASSOUR, LPC

Increase in prevalence of chronic diseases and behavioral health and surge in awareness of stress management drive the growth of the global mental health market. North America contributed to the highest share in 2020, and is estimated to continue its dominant share in terms of revenue by 2030. During the Covid-19 pandemic, there were disruptions in gaining proper treatment for mental health disorders due to close down of clinics.

Ref. By - https://www.verywellmind.com/how-rising-inflation-is-impacting-mental-health-5546955