Report Shows Increase in Struggling Canadians Despite Inflation Slowdown

July 9, 2024 TruthUSA

A growing number of Canadians are struggling financially, with nearly half stressed by housing costs and other living expenses, according to a recent survey.

One-in-three Canadians (32 percent) now fall into the “struggling” category, up from one-quarter two years ago, said the Angus Reid Institute (ARI) in its July 9 report. In addition, the number of Canadians in the “comfortable” category has decreased to 23 percent, down from 29 percent in 2022.

Economic stress is not evenly distributed across the country, the report says.

Canadians experiencing economic distress are most prevalent in major western cities such as Regina, Saskatoon, Edmonton, and Calgary, as well as suburban Toronto, while Montreal residents are most likely among urbanites to be categorized as “thriving.”

Nearly half (46 percent) of respondents in Saskatchewan and Newfoundland and Labrador were classified as struggling.

The findings come as the annual inflation rate stabilized, with the Consumer Price Index declining to 2.9 percent year-over-year in May, down from 3.4 percent in May 2023, according to Statistics Canada data.

The researchers attributed an unexpected increase in the inflation rate in May—to 2.9 percent, up from 2.7 percent in April—primarily to rising shelter costs. Despite a consistent downward trend in the inflation rate over previous months, Canadians continue to perceive that overall prices are climbing.

“While inflation may be decelerating, Canadians continue to feel that everything is getting more expensive around them,” the ARI report stated.

Issues of Concern

Concerns about housing affordability rank high among Canadians, with 33 percent surveyed by ARI expressing this view. Among those grappling with housing costs, over 44 percent say they are having a “tough” or “very difficult” time managing these expenses, marking a two-percentage-point increase from last year and a seven-point increase compared to 2022. This percentage increases to 47 percent among homeowners with a mortgage and jumps to 56 percent among renters.

Preceding housing cost concerns, three-in-five Canadians (60 percent) consider cost of living as their paramount worry, followed by health care at 41 percent.

Researchers noted that Canadians have also reported grappling with rising costs of essential goods and services. Despite data from Statistics Canada showing a decline in fresh produce prices since January, 87 percent of Canadians believe that the cost of produce has actually increased, the report said.

The survey also showed widespread economic pessimism among Canadians, with only 18 percent expecting their financial situation to improve over the next year. In contrast, 34 percent anticipate their finances will worsen, while 39 percent expect no significant change.

ARI conducted the online survey from June 14-20, polling a total of 4,204 Canadian adults who are members of the Angus Reid Forum. The report carries a margin of error of plus or minus 1.5 percentage points, 19 times out of 20.

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