Price shock: How Canadians are coping with the rising cost of living
21 Mar 2023
Canadians are feeling the heat as rising inflation, increasing interest rates, and higher debt loads are scorching their finances.
After slashing interest rates to near zero early in the pandemic, the Bank of Canada raised its benchmark interest rate eight times over the last year to tame inflation—which is at the highest level in decades. On top of that, total consumer debt climbed to $2.36 trillion, with average non-mortgage debt per consumer sitting at more than $21K.
Rising costs are taking a toll on nearly all Canadians. However, the impact is felt more acutely by low-income households and those carrying debt. In fact, according to our recent survey, more than a quarter of Canadians (27%) say they can’t afford any additional increases in monthly living expenses and financial obligations; low-income households (<$50k) are more than twice as likely as high-income households ($100k+) to say this.
Further insights from our survey are illustrated in the following infographic.
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