High inflation has forced more than a quarter of Canadians to cut spending on basic necessities like food, electricity, transportation and housing, according to a poll released Monday.
Additionally, 37% said they were buying cheaper versions of the same products and 46% cut back on items considered non-essential, such as entertainment, meals or travel.
The survey, commissioned by MNP Ltd, a firm specializing in insolvency, also indicates that 60% of Canadians are already feeling the effects of rising interest rates.
The survey release comes two days before the Bank of Canada is due to make another interest rate announcement and many economists believe it could decide on a 0.75 point hike.
On June 1, the Bank of Canada has already decided for the second consecutive time to raise interest rates by 0.5 points. Currently, the central bank maintains the interest rate at 1.5%.
In May, inflation hit 7.7%, the highest since 1983.
Last week, one of the country’s main banks, the Royal Bank of Canada (RBC), warned that the country would suffer a “moderate” recession in 2024, due to high inflation and rising interest rates. ‘interest.
Despite this, RBC defended the need for the Bank of Canada to raise rates, with even “bigger and more damaging” hikes, because the priority is to contain inflation.
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