Cost of living remains primary concern in millions of households
Inflation is easing, interest rates are being cut, but for most Canadians the cost of living remains a major financial concern.
A new report from the Angus Reid Institute published today (July 9) shows that 60% of respondents nationally cite cost of living as the issue they are most galvanized by, well above health care (41%), housing affordability (33%), and environment/climate change (21%).
While cost of living has topped the list for the past year, it has slipped three percentage points since June 2023 with health care down five points, while housing affordability and taxes are among the rising concerns.
Cost of living concerns are highest among respondents in Newfoundland & Labrador (76%), New Brunswick (69%), Saskatchewan (67%), and Alberta (66%), and lowest in Quebec (55%) and BC (59%).
Specific product groups that poll participants named as having increased in price over the past year include fruit and vegetables, meat, dairy, gasoline, and personal care items. Prices have affected summer spending according to recent data.
Housing costs are also a key concern with 44% of those with a mortgage or rent to pay saying the financial aspect of this is tough or very difficult, up from 42% a year ago. For mortgage holders, those with household incomes above $100K are less likely to be finding payments tough (40%) compared to those in the $50-99K segment (53%) and those earning less than $50K (54%).
Worse off than in 2023
Although inflation is cooling, almost half of all respondents nationally say they are worse off financially now than they were a year ago (47%) with most of the rest saying they are treading water (36%), and just 15% believing they are better off now.
More Canadians are negative about their financial outlook with 34% expecting to be worse off a year from now, 39% expecting to be in a similar position, and just 18% expecting their situation to have improved.
Angus Reid Institute’s Economic Stress Index shows that more Canadians are self-assessing themselves as struggling (32%) compared to last year (21%), while the share of those who say they are uncomfortable held steady at 22%, those who are comfortable fell to 23% from 26%, and those who are thriving increased to 23% from 21%.
Those in the provinces where cost of living concerns are highest are also more likely to say they are struggling now. By city, respondents in Regina, Saskatoon, Edmonton, Calgary, and suburban Toronto, are more likely to be struggling, with Montrealers most likely among urbanites to be thriving.
