Ottawa (Commonwealth Union)_ A recent Statistics Canada report highlights a sharp increase in the financial strain experienced by Canadians due to rising prices. According to the spring 2024 cycle of the Canadian Social Survey, 45 percent of Canadians now struggle to meet their daily expenses, a significant rise from 33 percent in spring 2022. This escalation in financial difficulty is particularly pronounced among younger adults, lower-income households, families with children and individuals with disabilities.
The findings are consistent with observations from the Bank of Canada’s latest quarterly survey of consumer expectations, which reports that perceived financial stress remains high. Despite the increase in the number of Canadians impacted by inflation, the proportion of individuals who describe their financial situation as “quite a bit” or “extremely” stressful on most days has remained relatively stable, rising slightly from 33 percent to 35 percent since 2022.
The report reveals stark disparities in the impact of inflation across different income levels. Among those in the lowest-income quintile, 59 percent report that their ability to cover daily expenses has been significantly affected. In comparison, 27 percent of individuals in the highest income quintile face similar challenges.
Housing affordability has emerged as a critical concern, with 38 percent of Canadians expressing significant anxiety about their ability to afford housing or rent. This figure has increased from 30 percent in 2022. The concern is most acute among younger Canadians, with 56 percent of individuals aged 15 to 34 reporting substantial worry about housing costs. Financial stress is notably higher among younger adults. Specifically, 55 percent of individuals aged 25 to 44 account that increasing prices severely influence their financial well-being, and over 45 percent describe their everyday financial condition as quite a bit or extremely stressful.
Additionally, food prices, which have surged due to inflation, continue to be a major concern. The survey indicates that 23 percent of respondents are either somewhat or very likely to seek food or meals from community organisations within the next six months. This issue is particularly pronounced among those aged 25 to 34 (28 percent) and 35 to 44 (27 percent). The data highlights the escalating financial pressures faced by Canadians, especially among vulnerable groups. These findings underscore the urgent need for targeted policy interventions to alleviate financial stress and address the challenges posed by rising costs.
