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25 Aug, 2022 06:43

Four in five Canadians pinching pennies – report

Soaring gas prices have forced people to cut spending, Angus Reid data shows
Four in five Canadians pinching pennies – report

As inflation piles pressure on Canadian budgets, people are spending less, market researcher Angus Reid Institute reported on Monday.

The survey shows that four out of five Canadians have cut spending in recent months by either trimming their discretionary budget, delaying a major purchase, driving less, scaling back travel and charitable donations, or deferring savings for the future. This reportedly represents an increase from 74% of respondents in February.

Over half of the nation (52%) said they could not manage a sudden expense of more than $1,000. For two in five Canadians, a surprise bonus of $5,000 would be used to alleviate debt pressure. For one in ten, it would immediately go towards daily expenses.

“Regionally, some parts of the country seem to be feeling more financial pain than others,” the report stated, pointing to Saskatchewan and the Atlantic area.

Canada’s year-on-year inflation hit a 40-year high in June, with the Consumer Price Index reaching 8.1%. The annual rate of inflation cooled down to 7.6% in July, according to a Statistics Canada report issued on August 16.

Inflation has been rising across the developed world amid the worsening energy crunch caused by tight supplies of oil and gas, a situation exacerbated by the sanctions on Russia, a major energy exporter.

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