Rising costs causing ‘inflation isolation’ among Canadians, poll finds
Global News
Amidst the rising tide of inflation Canadians are not only facing financial stress, but the rising costs are also exerting a toll on their mental well-being.
In the wake of high inflation, Canadians find themselves facing a twofold dilemma, one that not only burdens their wallets but also takes a toll on their mental health, according to a recent Ipsos poll.
The poll, released Monday and commissioned by MNP LTD, found that higher costs and interest rates are causing “inflation isolation,” as more than half of the respondents (51 per cent) said they are staying home more to save money.
A third of respondents said they are spending less time socializing or hanging out with friends in order to cut costs.
“Canadians are feeling mental anguish with rising inflation and interest rates,” Grant Bazian, president of MNP LTD told Global News. “People are scared of spending money and as a result, they’re staying at home and not doing things they normally would and feeling isolated as a result.”
The poll comes less than a week after the head of the Bank of Canada, Tiff Macklem, acknowledged that although inflation rates are starting to slow, higher interest rates are “squeezing” Canadians. The Bank of Canada began rapidly increasing its benchmark interest rate in March 2022, causing many homeowners’ mortgage payments to balloon.
This financial pinch felt by some comes amid soaring food costs, which is causing many Canadians to have to reach deeper into their pockets to afford everyday essentials.
“Canadians are being practical and smart,” Bazian said. “They’re spending money where they need — a roof over their head and food in their belly — but they’re adverse to spending money outside of the home, like movies, concerts, maybe trips.”
The Ipsos poll found that 34 per cent of Canadians reported paying more in their monthly debt payments compared to a year ago. And almost half (45 per cent) said they don’t believe they will be able to cover their living expenses in the next year without racking up more debt.
