Canadians are feeling the inflationary pinch when it comes to meeting their daily expenses, with a new study revealing that nearly half of the country reporting they’ve been “greatly affected” by the rising cost of living.
“In spring 2024, nearly half (45%) of Canadians reported that rising prices were greatly affecting their ability to meet day-to-day expenses, 12 percentage points higher than what it was two years earlier (33%),” reads a study from Statistics Canada released on Thursday.
The study, called the Canadian Social Survey, focused on 84 indicators used to measure Canadians’ overall well-being and quality of life.
The results are then used to inform future policy decisions.
Statistics Canada asked Canadians about how rising prices are affecting their ability to meet day-to-day expenses as well as their concerns around housing affordability.
Respondents were also asked about the likelihood that they will rely on community organizations like food banks to obtain food or meals, as well as their financial stress levels.
Of the 45% who responded to being greatly affected by the rising cost of living, that sentiment was most prevalent among young adults, who were the most likely to report financial stress and reliance on food banks.
Within that cohort, only one in five people reported having a high level of life satisfaction, while the remainder said that they were stressed about money “most days.”
Respondents with children were also more likely to report having greater financial stress, with 55% of households with children saying they felt day-to-day pressure, compared to the 37% of respondents who were without kids.
Close to 40% of respondents cited housing affordability as a stress factor that they were “very concerned” about, holding a fear that they would never make enough money to buy a home or keep up with monthly rent.
Statistics Canada warned of the mental health effects that many Canadians are facing having remained in a state of prolonged stress over their finances.
“This extended period of financial strain can also negatively impact mental health. When asked about financial-related stress in spring 2024, more than one-third (35%) of Canadians described most days as quite a bit or extremely stressful due to financial issues. This was similar to the proportion that reported having financial stress two years earlier (33%),” reads the study.
The stress of being financially vulnerable “is known to influence overall well-being” said Statistics Canada.
“Among those who described most days as quite a bit or very stressful due to financial issues in spring 2024, about one in five (17%) reported having high life satisfaction compared with nearly three-quarters (70%) of those who reported most days as being not at all or not very stressful,” it said.
Canadians’ perception of the future was also greatly influenced by their various financial situations, with 73% of respondents who reported not having daily financial stress also holding a positive outlook on the future.
Whereas only 35% of respondents who reported a high level of financial stress also held a positive outlook of the future.
“Overall, findings from the current analysis show that certain groups are experiencing greater financial strain due to rising prices, including those with lower incomes, younger adults, households with children, and persons with a disability. Furthermore, people experiencing greater financial stress are more likely to report having poorer quality of life,” reads the study.