Canadians adjust spending habits, lifestyle to cope with inflation

Many Canadians have adjusted their spending habits and lifestyle to cope with consumer Inflation which has steadily increased, reaching a year-over-year increase of 6.8 per cent in April, Statistics Canada said.

According to a new survey conducted by the national statistical agency from April 19 to May 1 on Thursday, half of Canadians said they have sought out sales and promotions in the six months preceding the survey.

Meanwhile, 47 per cent have found themselves purchasing cheaper alternatives, brands or items, and 45 per cent have delayed making a purchase in response to rising prices, Xinhua news agency reported.

In addition to making changes to their spending habits, more than one-quarter of Canadians reported that they have had to borrow money from friends or relatives, take on additional debt or use credit to meet day-to-day expenses in the six months preceding the survey.

Several groups were more likely to report borrowing money: those in the bottom two household income quintiles; younger individuals (aged 15 to 39); households with at least one child aged 17 or younger; persons with a disability; and individuals belonging to racialised groups.

Rising prices are also affecting Canadians' ability to save. Nearly 24 per cent said they have had to draw on their savings in order to pay expenses, 29 per cent said they were saving less, and 19 per cent reported they are no longer able to save each month, Statistics Canada added.

Indo-Asian News Service