Inflation Impact: Canadians are Slashing Essential Living Costs to Counteract Rising Prices

As inflation surges, an increasing number of Canadians are countering the heightened cost of living by downsizing their household expenses and even essential living expenses.

A recent survey conducted by BDO Debt Solutions investigates affordability and debt in Canada, spotlighting Canadians’ strategies for handling the economic crunch. It reports that 56% of respondents feel the necessity to eliminate non-essential spending to survive the inflation, while 30% are so inundated by their debt that they feel helpless.

BDO Affordability Index Spring 2023 (CNW Group/BDO Canada LLC)

The web-based poll conducted by Léger surveyed more than 1,500 Canadians and discovered that 37% of respondents plan to slash their debt over the next 12 months via improved budgeting practices. This figure rises to 47% among respondents aged 18-34. Meanwhile, 58% of lower-income households earning less than $40,000 are not just cutting back on non-essentials but also vital necessities like food, clothing, and even utilities usage.

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Moreover, the idea of supplementing income streams through supplementary gig jobs is increasingly favoured as a method to endure the affordability crisis and repay debt. About 31% of Canadians are prepared to undertake additional work for more financial autonomy, while 24% of respondents aged 18-34 have already diversified their income via part-time work to counteract inflation.


Information for this briefing was found via BDO Debt Solutions. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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