As prices continue to rise, many Canadians are struggling to make ends meet, according to the latest Canada Survey. The increase was 6.8 per cent in April.
Posted at 6:00 p.m.
Three out of four are Canadians
Daily expenses such as transportation, housing, food and clothing are very difficult to bear, say three out of four Canadians. Rising prices will increase the financial worries of households and will undoubtedly affect their decisions according to this new reality.
Many Canadians have changed their behavior by adjusting their spending habits, postponing the purchase of a home or moving into a new apartment.
Although there are some differences from one province to another, low-income people are more concerned and affected by rising prices.
Food prices are fueling stress
Rising food prices are regularly making headlines and increasing financial stress for many households. More than two in five Canadians said the increase would affect them the most. From April 2021 to April 2022, food prices increased by 9.7%. Households had to pay a lot more for staple foods.
Over the next six months, one in five Canadians is expected to receive food or lunch from a community organization.
Not just rising food prices, Canadians are struggling to budget for food, the survey said.
Transportation costs are of greater concern to rural residents. However, 94% of Canadians who buy gas are very (67%) or somewhat (27%) worried about rising gas prices.
Housing: Strong growth since 1983
Nearly 56% of Canadians are more or less concerned about their ability to afford a home or rent. In April 2022, house prices for rent and home purchase increased by 7.4% year-on-year, the biggest increase since 1983, Statistics Canada said in its report.
Canadians aged 15 to 39 are more concerned about this increase than those aged 40 and over, who have already bought and paid for their homes.
These concerns led to behavioral changes. In the previous six months, 39% of 15- to 29-year-olds and 38% of 30- to 39-year-olds said they had discontinued plans to change rental housing or buy a home.
Behavioral changes
To deal with inflation, half of the respondents have been looking for sales in the last six months. At the same time, 47% bought alternatives, brands or cheaper items and 45% postponed their purchase in response to rising prices, the survey revealed.
Nearly one-third of Canadians borrowed money from friends or relatives, borrowed heavily, or used credit to cover daily expenses.
Rising prices will also affect the savings potential of Canadians. Nearly 24% of Canadians say they want to immerse themselves in their savings for their expenses. In addition, 29% said they were saving less and 19% were no longer able to do so every month.
There are two main reasons
The rise in prices was mainly due to increased consumer demand and supply chain challenges. Last March, Statistics Canada revealed that businesses have supply chain problems that persist for a short period of time and in some cases worsen, especially when it comes to purchasing products or supplies domestically and internationally and maintaining inventory levels.
Methods: Data were taken from the third survey in the Portrait of the Canadian Society series, the newest project of short online surveys of the same respondents over a one-year period. It was held from April 19 to April 1er May 2022. These surveys use a potential panel representative of the Canadian population aged 15 and over.
