Vast majority of Canadians pinching their pennies amid high inflation: survey

Despite the latest inflation data in Canada showing a slight cooling, the vast majority of Canadians are pinching their pennies, according to a new survey.

An Angus Reid survey found that Canadians are responding to price increases with spending decreases with four of five respondents saying they cut spending in recent months, up from 74 per cent in February.

They have done this by either trimming their discretionary budget, delaying major purchases, driving less, scaling back travel and charitable donations or deferring saving for the future.

Almost half said they couldn’t manage a sudden expense of more than a $1,000.

Economist says the cooling is due to a drop in gas prices, however food prices at grocery stores rose at the fastest pace since August 1981, with prices up by 9.9 per cent on a year-over-year basis compared with 9.4 per cent the previous month.

The survey also found almost 80 per cent of respondents think grocery stores are taking advantage of inflation to make increased profits.

More than half (56 per cent) of Canadians say they can’t keep up with the cost of living and just two in five said they feel they are keeping the pace.

Inflation is currently close to a 40-year-high but the level of month-to-month price increases was the lowest so far this year. Prices have risen by 7.6 per cent since July 2021, but another drop is expected in August.