As Canadians continue to feel the pinch of decades-high inflation, one in four say they can’t afford an unexpected expense of $500, according to new data from Statistics Canada.
The report released on Monday also showed that more than one-third (35 per cent) of the population found it hard to make ends meet over the past year as the cost of everyday essentials soared.
Meanwhile, nearly half of Canadians said they were worried about keeping a roof over their head.
“While the vast majority of Canadians were concerned with rising gasoline and food prices, almost half (44 per cent) said they were very concerned with their household’s ability to afford housing or rent,” Statistics Canada said.
Young adults, women and racialized groups in particular felt the impact of the high cost of living, StatCan data showed.
Statistics Canada conducted its survey between October and December 2022.
Nearly half (46 per cent) of Canadians aged 35 to 44 said they faced challenges to cover their expenses in the past 12 months. That was the highest proportion of any age bracket, followed by 41 per cent for those aged 45 to 54 years.
Recent polling by Ipsos conducted exclusively for Global News echoed some of those concerns, with 22 per cent saying they are “completely out of money” to the degree that they would not be able to pay more for household necessities.
Housing concerns
Affordable housing was a major concern for the majority (over 55 per cent) in the younger demographic – between 15 to 34 – as well as Black Canadians (74 per cent) and the South Asian community (65 per cent), the StatCan data showed.
This comes as rents and mortgage rates are through the roof across the country.
According to the Canada Mortgage and Housing Corporation (CMHC), renters in Canada are facing the toughest market since 2001 with low vacancies, higher prices and surging demand.
In December, the national average rent rose by more than 12 per cent to $2,005 compared with a year earlier, according to Rentals.ca’s January 2023 Rent Report.
That was the second straight month that the average monthly rent exceeded $2,000 in the country.
The rising cost of housing pushed many Canadians to move last year, Statistics Canada found in its survey. Among those that moved, those that identified as Filipino (48 per cent), South Asian (41 per cent) and Black (40 per cent) said this influenced their decision.
Financial optimism as inflation slows
Canada’s annual inflation rate hit a 40-year peak last year, reaching 8.1 per cent in June 2022.
Last year’s inflation was up by 6.8 per cent compared to 2021, with Canadians seeing the largest price gains for transport, food and shelter.
However, in recent months inflation has eased, raising optimism among Canadians despite the financial hardships.
December saw inflation cool to 6.3 per cent – the biggest monthly drop since early on in the COVID-19 pandemic, according to the latest inflation report by Statistics Canada released last month.
Younger Canadians were more optimistic than the older population about their financial situation improving in one year, Monday’s report stated.
“One possible explanation is that seniors are more likely to live on a fixed income or pension,” StatCan said.
— with files from Global News’ Craig Lord