Almost half of Canadians now say they are financially worse than this time last year, as inflation has skyrocketed to Canada's highest in 40 years. increase.
One-third said things are expected to get worse next year, with the highest number of respondents in more than a decade.
This number is from a new Angus Reid Institute (ARI) surveyreleased on Fridaywith more than 5,000 people between June 7th and June 13th. We investigated the financial condition and struggle of Canadian adults in Japan.
The results shed light on the plight that Canadians face from coast to coast.
According to Statistics Canada, inflation is now 7.7% higher than last year. Inflation hasn't been that high since 1983, when Canada Day replaced Dominion Day.
Trend Down
The proportion of Canadians is financially worse than it was a year ago and has been steadily increasing over the past few years. In 2018, only 29% of Canadians said they were worse than the previous year. That number rose to 32% in the first quarter of 2020 and to 45% in the second quarter of 2022.
This is the highest value since ARI started tracking this particular question in 2010.
At the same time, the number of Canadians who said they were doing the same thing a year ago plummeted from 54% in 2018 to 44% in 2020 and a second 36%. .. The 2022 quarter.
Interestingly, the percentage of Canadians who said they were doing better than the previous year surged to 23% in 2020 after hovering 13-14% over the years. Did. That number is currently 17 percent.
When we classify these results into respondents' household income, it is much more likely that top-tier people with an annual income of over $ 200,000 will report better performance than last year. .. Financially it is 26% and the least likely to report that they are getting worse is 30%.
On the other side of the scale, those who make less than $ 25,000 a year are more likely to say they're worse this year at 51%, which is better than last year. The sex is low. At 15% — emphasizes that changes such as inflation are less damaging to the rich and that poor people become increasingly poor as rising costs hit their wallets.
Only one in five Canadians expected to improve in a year, and one-third expected it to worsen.
"The residents of Saskatchewan are the least pessimistic and the least optimistic about this question," the report said.
Living expenses are exorbitant for many
Simply living consumes the time and energy of most Canadians, food, housing and bills. Is causing enormous economic concerns across the country.
When asked what the state's biggest problem is, respondents have up to three options to choose from, with "living costs / inflation" being by far the most popular option, with 63 respondents. % Selected it as the main issue.
Healthcare and housing affordability came in second and third at 52% and 31%, respectively, and climate change and the environment came in fourth at 26%.
"Some parts of the country are more exposed to economic stress than others," the report said. "On the Atlantic coast of Canada, living costs were already higher than in most other parts of the country last year, and New Foundland and Labrador, Nova Scotia and New Brunswick, along with Manitova and British Columbia, are higher than any other state. We are experiencing inflation. ”
In Canada as a whole, more than half of those who pay rent say it is difficult to pay rent.
For homeowners, monthly mortgage payments have increased after a series of interest rate hikes by the Bank of Canada. A quarter of Canadians on mortgages say prices have already risen, and the other half say they expect prices to rise. Two-thirds say that if payments increase by $ 300 a month, they may run out of room.
"The challenge for many who are struggling to repay the CERB they receive after the pandemic era is being abolished is to avoid debt," the report said, many Canadians. States already struggling. debt.
Two in five Canadians said they had credit card debt.
Of those who scored high on the ARI Economic Stress Index and were classified as "suffering" in the index, 62% have credit card debt, 5 of this group. Three-thirds said they would accept them
The Economic Stress Index, created in January, is the core cost and respondents related to quality of life, such as debt, housing and household food costs. I'm investigating.
There are four categories: people who are struggling, people who are uncomfortable, people who are comfortable, and people who are prosperous. The percentage of people who are "prosperous" has decreased by six. Since May, the number of people who are "hard" has increased by 3 points, but the good news is that 29% of Canadians fall into the "comfort" category, compared to 26% in May.
"The majority of Atlantic states fall into the struggle or discomfort category," the report said, with 55% in Nova Scotia and 64% in Newfoundland and Labrador in these two categories. It is classified as one of. ..
In most states across the country, more than half of the respondents fall into one of the bottom two categories: 64 percent in Newfoundland and Labrador, 59 percent in Alberta, 62 percent in Saskatchewan, 57 percent in Manitoba, 55 percent in Nova Scotia, 54 percent in Ontario. Prince Edward Island was not included in the survey.
"More than half of Quebec (61 percent) and BC (52 percent) only) fall into the top two categories of ESI," the report said. "In particular, according to the CPI of Statistics Canada, the cost of living in these states is lower than any other state in the country."
Considered "prosperous" among Canadian respondents. The state with the highest percentage was Quebec. What a 30 percent.
Over 75% of Canadians say their state was unable to handle inflation well.
About one in three Canadians said the cost of purchasing gas increased, and less than half consciously avoided driving and looked for other means of transportation to save money. He said the cost was reduced because he was there. ..
Food prices leave hunger
The report states that inflation has a more severe impact than other commodities.
"Food inflation in May was 10%, higher than the overall 7.7% inflation," the report said.
More than half of the Canadians surveyed reported struggling to invoice groceries. Every month, it is reported that this is 7 points higher than last October.
And the lower the tax rate, the harder it is to put food on the table. Seven out of ten Canadians earn less than $ 25,000. The year said it was difficult to feed himself and his family, but at least one-third of all income reported that it was difficult to budget for food. Canada's food banks are closing school and blocking access to school-based food programs, which could make children, who make up one-third of people dependent on food banks, increasingly hungry this summer. I am concerned about having sex.
Earlier this month at the House of Commons after NDP leader Jagmeet Singh laughed at the MP and talked about the Canadians can't afford groceries. In a video posted by Shin about the incident, one in four Canadians is hungry and then laughs.
"The Canadian said he was hungry and could hear laughter in the room," Shin said after the speaker asked him to repeat. "They should be ashamed of themselves. He said on social media that it was the conservative MPs who were laughing.
Trust in institutional investors
Inflation As rates rise, the Bank of Canada aims to maintain its impact on Canadians. Studies show that Canada's confidence in the institution is split. 46% trust the Bank of Canada. But 41% say they don't trust.
The results are more severe when political trends take into account the percentage of survey respondents. Conservatives and Canada Past supporters of the People's Party are unlikely to trust the Bank of Canada, with 59% and 86% showing this, respectively.
The Bank of Canada admits it has failed, Canada's economy is overheating and we are currently catching up.