A growing number of Canadians believe basic needs are unaffordable amid the cost of living going up, according to a poll done by Ipsos on behalf of MNP. .“Canadians are putting more of their paychecks towards paying for basic necessities as the cost of living rises, which in turn is leaving less of a financial buffer to manage the impacts of current and potential future interest rate hikes,” said MNP President Grant Bazian in a Monday press release. .The poll said the basic need most Canadians believe is least affordable is food at 52%, up from 47% in December. .The poll went on to say the basic need taking second place for less affordable is savings (49%). This was followed by transportation and clothing or other household items (45%) and housing (37%). .While fewer Canadians find themselves closer to insolvency than last quarter (46%), the poll said the average Canadian has less money to spend at the end of the month as they pay more for their basic needs. The amount the average Canadian has left over at the end of the month continued to drop, decreasing $37 from the previous quarter to $654. .Younger Canadians were being hit the hardest. People 18- to 34-years-old noticed the largest decrease in their average monthly finances, dropping $273 to $606..Bazian said it's important to note almost half of Canadians are $200 away from not being able to cover their bills and debt obligations. With less overall room in people’s budgets, he said “any future increases to interest rates or the prices of everyday items could push individuals closer to insolvency.”.The poll said more Canadians are rating their personal debt situation as excellent (43%) and fewer are rating it as terrible (14%). When asked to forecast their expected debt situation one year from now, three-in-10 respondents said they expect their debt situation to improve, but one-in-10 expect it to worsen. .Bazian said this new optimism might be temporary, as the economic situation in Canada is unfolding. The effects of interest rate hikes reveal themselves over time, so he said people might be “seeing a false sense of optimism right now.” .The president advises people to take a closer look at their budgets and test whether or not they can cover their bills if their costs and debts go up. If more debt is required to subsidize bills, he said people should reach out to a licensed insolvency trustee. .“Some mistakenly perceive that their situation isn’t as bad as it really is or are in denial about how bad it is,” he said. .“Waiting too long not only reduces the amount of debt relief options available to them but also increases the amount of time spent stressing and worrying.” .Statistics Canada said on September 20 inflation in Canada rose 7% on a year-over-year basis in August, down from a 7.6% gain in July. .READ MORE: Inflation in Canada down to 7% in August.This was the second consecutive month when inflation dropped and was driven by lower gas prices in August compared with July. .Grocery store item prices increased in August by 10.8%, rising at the fastest pace since 1981. The supply of food continued to be affected by factors such as extreme weather, higher input costs, Russia’s invasion of Ukraine, and supply chain problems. .The poll was conducted online with 2,000 Canadians between September 6 to 13. The poll has a margin of error of +/-2.5 percentage points, 19 times out of 20.
A growing number of Canadians believe basic needs are unaffordable amid the cost of living going up, according to a poll done by Ipsos on behalf of MNP. .“Canadians are putting more of their paychecks towards paying for basic necessities as the cost of living rises, which in turn is leaving less of a financial buffer to manage the impacts of current and potential future interest rate hikes,” said MNP President Grant Bazian in a Monday press release. .The poll said the basic need most Canadians believe is least affordable is food at 52%, up from 47% in December. .The poll went on to say the basic need taking second place for less affordable is savings (49%). This was followed by transportation and clothing or other household items (45%) and housing (37%). .While fewer Canadians find themselves closer to insolvency than last quarter (46%), the poll said the average Canadian has less money to spend at the end of the month as they pay more for their basic needs. The amount the average Canadian has left over at the end of the month continued to drop, decreasing $37 from the previous quarter to $654. .Younger Canadians were being hit the hardest. People 18- to 34-years-old noticed the largest decrease in their average monthly finances, dropping $273 to $606..Bazian said it's important to note almost half of Canadians are $200 away from not being able to cover their bills and debt obligations. With less overall room in people’s budgets, he said “any future increases to interest rates or the prices of everyday items could push individuals closer to insolvency.”.The poll said more Canadians are rating their personal debt situation as excellent (43%) and fewer are rating it as terrible (14%). When asked to forecast their expected debt situation one year from now, three-in-10 respondents said they expect their debt situation to improve, but one-in-10 expect it to worsen. .Bazian said this new optimism might be temporary, as the economic situation in Canada is unfolding. The effects of interest rate hikes reveal themselves over time, so he said people might be “seeing a false sense of optimism right now.” .The president advises people to take a closer look at their budgets and test whether or not they can cover their bills if their costs and debts go up. If more debt is required to subsidize bills, he said people should reach out to a licensed insolvency trustee. .“Some mistakenly perceive that their situation isn’t as bad as it really is or are in denial about how bad it is,” he said. .“Waiting too long not only reduces the amount of debt relief options available to them but also increases the amount of time spent stressing and worrying.” .Statistics Canada said on September 20 inflation in Canada rose 7% on a year-over-year basis in August, down from a 7.6% gain in July. .READ MORE: Inflation in Canada down to 7% in August.This was the second consecutive month when inflation dropped and was driven by lower gas prices in August compared with July. .Grocery store item prices increased in August by 10.8%, rising at the fastest pace since 1981. The supply of food continued to be affected by factors such as extreme weather, higher input costs, Russia’s invasion of Ukraine, and supply chain problems. .The poll was conducted online with 2,000 Canadians between September 6 to 13. The poll has a margin of error of +/-2.5 percentage points, 19 times out of 20.
