Posthaste: Canadians are dealing with inflation by fight, flight or just freezing
Canadians #Canadians
Inflation contiunes to raise concerns in Toronto
Good morning.
Inflation is fuelling anger, fear and helplessness among Canadians and they’re responding to it through fight, flight or just freezing, according to a new study by Empathy Inc.
The study found that 73 per cent feel some type of indignation about the current inflation cycle, although the level of frustration varies based on their financial situation. Those who feel financially comfortable are typically just annoyed, while 55 per cent feel frustrated.
Fear was the second-most common reaction (59 per cent) to inflation, and that was heightened among those who do not consider themselves financially stable. Canadians who believe their basic needs are not being met say inflation makes them nervous, afraid and insecure. But those feelings dissipate as soon as people feel financially stable, and even more so when they are financially comfortable.
More than half of the 200 Canadians surveyed are also feeling hopeless because they are unsure what to do. Even those who are financially stable feel the economic situation is out of their control and are not able to escape this feeling of hopelessness.
The report said our first instinct when coping with inflation is “flight,” or cutting living costs, with 35 per cent indicating their primary response is to reduce overall spending.
“Canadians who feel precarious about their finances are more likely to reduce spending across all essential categories, such as food, health care and clothing, compared to those who feel financially comfortable,” the report said.
Most Canadians are also now more price sensitive, with 87 per cent on the lookout for cheaper products and services. Canadians indicated they are most price conscious about food and groceries (79 per cent), followed by utilities (49 per cent) and vehicle ownership (47 per cent).
“Food prices are felt more immediately and concretely; in a world where most expenses are automated through pre-payments and credit cards, grocery buying remains as a tactile and active spending experience,” the report said. “We feel a bit apprehensive as we pile items onto the belt; we notice the big total as we pull out our card.”
Story continues
Another round of price hikes are expected to hit grocery stores in February when the annual holiday season blackout on cost increases comes to an end, Metro Inc. chief executive Eric La Flèche told the Financial Post’s Jake Edmiston this week.
Many Canadians also plan to fight to make more money as a way of dealing with inflation, with 46 per cent agreeing that “I’ll just have to find a way to make more money because of inflation.”
On the other hand, 19 per cent feel frozen, or powerless to do anything, with slightly more millennials and gen-Zers feeling that way.
“They are at the life stage with the most obligations, carrying financial anchors such as a mortgage, children and demanding careers that limit their choices,” the report said. “All these result in risk aversion and inaction during a crisis.”
_____________________________________________________________
Was this newsletter forwarded to you? Sign up here to get it delivered to your inbox._____________________________________________________________
Canadian crude shipments to Asia are set to surge to the highest in more than a year as United States refinery outages force producers to find new outlets for their oil. At least seven million barrels of heavy-sour crude produced in Canada’s oilsands have been sold to Asian buyers for February loading, according to people familiar with the matter. That’s the most since January 2022, Vortexa data shows. — Bloomberg
___________________________________________________
The Department of Finance Canada publishes financial results for November 2022
Jagmeet Singh, joined by NDP MP Laurel Collins (Victoria), will speak with journalists to discuss Canadians’ growing worries about health care privatization and rising costs
The emergency committee of the World Health Organization will meet to consider whether the COVID-19 pandemic remains a global emergency
Today’s data: Ottawa’s fiscal monitor, U.S. personal income and consumption, University of Michigan consumer sentiment index
Earnings: Chevron Corp., American Express Co., Colgate-Palmolive Co., LG Electronics Inc.
___________________________________________________
_______________________________________________________
____________________________________________________
The most important decision when drafting a will is who to name as the executor, the person responsible for ensuring the testator’s wishes are followed. Financial Post’s Jason Heath looked at some of the most important considerations in making that decision and what those chosen need to know about carrying out their obligations. Find out more.
____________________________________________________
Today’s Posthaste was written by Noella Ovid, with additional reporting from The Canadian Press, Thomson Reuters and Bloomberg.
Have a story idea, pitch, embargoed report, or a suggestion for this newsletter? Email us at posthaste@postmedia.com, or hit reply to send us a note.
Listen to Down to Business for in-depth discussions and insights into the latest in Canadian business, available wherever you get your podcasts. Check out the latest episode below: