Most Canadians are forced to cut spending because of prices growth
The latest poll by Angus Reid Institute shows that Canadians are facing a lot of pressure from higher prices: four-out-of-five respondents had to cut their spending during the previous few months.
According to the results of a survey of 2,279 adult Canadians, 56% of respondents can’t cope with the current cost of living. Many individuals say they wouldn’t be able to manage unexpected expenses these days, and 52% say they can’t withstand a surprise expense exceeding $1,000.
“Canadians with lower income are much more likely to say their budget is already too stretched to cope with any unexpected expenses,” – the report noted.
“It turns out 32% of households with an annual income of less than $25,000 and 16% of those earning less than $50,000 a year say there’s no space in their budgets for unplanned expenses.”
Most Canadians were forced to cut spending lately by decreasing their discretionary spending (52%), postponing a large purchase (42%) or by using their car less frequently (41%).
The survey shows that most Canadians worry about higher grocery bills, with four-in-five respondents saying grocery stores are benefitting from higher inflation. At the same time, 7% believe higher margins can be explained by good management.
According to Statistics Canada, the price of food at grocery stores was up by 9.9% annually last month.
The price of eggs reported the largest increase (15.8%), with coffee and tea following (13.8%).
The overall consumer price index (CPI) rose by 7.6% from a year ago, which is only slightly less than July’s record high 8.1%.