Economic pessimism in Canada has declined as inflation cools, but many households continue to struggle with the cost of living, according to new data from the Angus Reid Institute. While two-in-five Canadians (38%) say they are worse off financially than they were a year ago, this figure is the lowest recorded since 2021, though still historically high in the Institute's 14 years of tracking.The study, released as Canadians shop during a GST holiday and ahead of a federal fiscal update, also shows that optimism about the future is gradually improving. Just 26% of Canadians express pessimism about their financial prospects for 2025, the lowest level of negativity since 2021.Improved affordability of rent and mortgages has played a role in this shift. Fewer Canadians (39%) report difficulty meeting housing payments compared to June, when the figure stood at 44%, as mortgage rates have dipped and rental price growth has slowed.However, concerns over food costs remain high. Nearly half (48%) of Canadians find it challenging to afford groceries, with 36% describing it as "difficult" and 12% as "very difficult."The situation is particularly challenging for new immigrants, who face higher financial strain. Among those who have lived in Canada for less than a decade, 63% report difficulties with grocery costs, compared to 47% of those born in Canada. Similarly, recent immigrants are more likely to struggle with rent or mortgage payments (61% vs. 39%).“These data reveal some softening of financial pressure for many Canadians, but the cost of food and housing continues to weigh heavily, especially on newer Canadians,” the report noted.The findings come as the federal government shifts its immigration policies heading into 2025, a move that could have further implications for housing and living costs across the country.
