The Impact of Rising Inflation on Canadians

Below you will find the full results of our market research on inflation, released January, 2024. The study was conducted through an online survey from December 15, 2023 to January 15, 2023. Our survey, targeting Canadian adults, was completed by 1,247 respondents. The results have a margin of error of ±3% at a 95% confidence level. This margin of error indicates the degree to which the results might differ from the true values for the entire population of Canadian adults.

Pie Chart: How concerned are you about inflation in Canada? Extremely concerned 41.0%, Somewhat Concerned 31.6%, Moderately concerned 19.3%, Not very concerned 5.3%, Not at all concerned 2.9% — Source: LARi Inflation Survey

Pie Chart: How do you perceive the current rate of inflation compared to last year? 38.2% Much higher 36.7% Somewhat higher 16.9% About the same 6.7% Somewhat lower 1.4% Much lower — Source: LARi Inflation Survey

Bar Chart: In what ways has inflation impacted your daily life and spending habits? 27.6% Spending less on non-essentials 22.8% Budgeting more carefully 20.8% Cutting down on dining out 16.4% Reducing travel and vacation expenses 12.4% Seeking new income sources — Source: LARi Inflation Survey

Bar Chart: How has inflation affected your long-term financial plans (e.g. retirement, saving for education)? 23.5% Focusing more on debt reduction 20.7% Switching products to reduce fees 17.1% Increasing savings 15.5% Changing investment strategies 12.8% Delaying retirement 10.4% Considering new retirement options — Source: LARi Inflation Survey

Pie Chart: Has rising inflation affected your confidence in Canada's economy? 62.0% Yes 19.9% No 18.0% Not sure — Source: LARi Inflation Survey

Pie Chart: Has inflation impacted your income or employment status? 60.8% No 25.0% Not sure 14.2% Yes — Source: LARi Inflation Survey

Pie Chart: Do you feel your current income is keeping pace with Canada's rate of inflation? 33.8% Somewhat 24.1% Barely 19.5% Mostly 17.3% Not at all 5.2% Completely January, 2024 - 1,247 respondents LARi.ca — Source: LARi Inflation Survey

Bar Chart: How has inflation impacted your perspective or decisions related to housing and real estate? 40.8% Buying a property is now less appealing 23.7% Postponing buying or selling 18.8% Exploring more affordable housing options 12.9% Considering renting instead of buying 3.8% Buying a property is now more appealing. January, 2024 - 1,247 respondents LARi.ca — Source: LARi Inflation Survey

Bar chart: How have you adjusted your savings or investment strategies in response to inflation? 24.5% Focusing on low-risk investments 24.5% Increasing contributions to savings 20.8% Exploring new investment opportunities 15.2% Diversifying investments to mitigate risk 15.1% Adjusting investment time horizons January, 2024 - 1,247 respondents LARi.ca — Source: LARi Inflation Survey

Pie Chart: How has inflation affected your confidence in financial products or investments? 34.4% No change 31.2% Slightly decreased 19.9% Significantly decreased 8,0% N/A to me 5.1% Slightly increased 1.4% Significantly increased January, 2024 - 1,247 respondents LARi.ca — Source: LARi Inflation Survey

Bar chart: Have you adjusted your insurance coverage (life, health, or property) due to inflation? 51.8% No changes to insurance 12.6% Decreased coverage to reduce expenses 12.1% N/A - I do not have insurance coverage 9.9% Modified coverage (e.g. different policy or provider) 7.2% Currently considering changes to insurance 6.4% Increased coverage due to inflation concerns. January, 2024 - 1,247 respondents LARi.ca — Source: LARi Inflation Survey

Bar Chart: In response to inflation, how have you altered your approach to debt management and borrowing? 31.2% No changes to debt management 17.0% Taken on more debt 16.7% N/A - I have no debts 16.5% Accelerated debt repayment efforts 12.1% Slowed or deferred debt repayments 6.5% Refinanced existing debts (e.g. mortgage) January 2024 - 1,247 respondents LARi.ca — Source: LARi Inflation Survey

Bar Chart: How has inflation affected your approach to emergency savings? 33.3% No change in Emergency Savings 22.0% Reduced or stopped contributing 15.1% Used emergency funds for increased expenses 11.6% Increased contributions 11.3% N/A - I don't have emergency savings 6.6% Started building emergency savings January, 2024 - 1,247 respondents LARi.ca — Source: LARi Inflation Survey

Pie Chart: Are you concerned that inflation will impact your future financial security? 30.5% Moderately concerned 27.0% Extremely concerned 25.7% Very concerned 12.7% Slightly concerned 4.1% Not at all concerned January, 2024 - 1,247 respondents LARi.ca — Source: LARi Inflation Survey

Pie Chart: In which areas have you noticed the most significant increase due to inflation? 69.7% Groceries 9.6% Utilities (gas, electricity, water) 8.0% Transportation (including gas) 8.0% Childcare or education 3.7% Entertainment or leisure 1.9% Clothing and personal items January, 2024 - 1,247 respondents LARi.ca — Source: LARi Inflation Survey

Pie Chart: What are your expectations regarding inflation for the next year? 35.6% Slight increase 22.7% Significant increase 20.8% About the same 12.5% Slight decrease 5.9% Not sure 2.5% Significant decrease January, 2024 - 1,247 respondents LARi.ca — Source: LARi Inflation Survey