A new survey has found that Canadians are feeling stressed from soaring inflation, particularly from higher grocery prices.
The FP Canada Financial Stress Index survey says that 38 per cent of respondents cited money as being the biggest source of stress for the fifth time in eight years, nearly twice as much as personal health, work or relationships.
More than two-thirds of Canadians say rising grocery prices are having a direct impact on their finance-related stress; 56 per cent say the same about soaring gas prices, followed closely by the impact of inflation on the cost of goods and services.
One in three say financial stress is leading to anxiety, depression or mental health challenges while 39 per cent report feeling less hopeful about their financial future now than they did a year ago.
The survey of 2,001 Canadians conducted by Leger also found that 45 per cent of Canadians between the ages of 18 and 34 say financial stress is hurting their mental health, compared with 31 per cent of Canadians 35 and up who share that opinion.
A majority of respondents (58 per cent) say the pandemic has contributed to financial stress, up from 45 per cent in 2021, while 39 per cent feel less hopeful about their financial future than they did a year ago.
Brock Smith, University of Victoria professor of marketing and entrepreneurship, says many Canadians are now having to make tough decisions to decide how to stretch their money.
“I think a lot of people are on strict budgets and when you’re food goes up 20 or 30 per cent and gas goes up 50 per cent that means you have to make other choices, you have to cut back on something,” he said.
And Smith says the longer prices continue to rise, the longer term impacts we’re going to start to see especially for those like seniors and other Canadians on tight budgets.
“They have to cut back on something so either they’re not eating as much or making different food choices, less healthy choices because the less healthy things tend to be cheaper so I think we’re going to see long term health impacts if this goes on for too much longer.”
Smith says as people change their buying habits it will soon start to impact businesses that sell non-essential goods, like retailers and restaurants, a ripple effect that could prove devastating if inflation isn’t brought under control soon.
The Canadian Press
CHEK News
