As inflation continues to simmer this summer, nearly two-thirds of Canadians report that inflation is not proving a significant deterrent to booking travel or even scaling back existing plans.

Statistics Canada reports that the level of month-to-month general price increases was the lowest so far this year in July, however, prices have risen by 7.6% since July 2021, meaning there is much work for the Bank of Canada left to do to return the country to its target rate of 2 percent; nevertheless only 32% of Canadians say they are reconsidering their travel options.

The data from the non-profit Angus Reid Institute suggests, however, that rising prices are resulting in decreased spending by Canadians, with four in five survey respondents saying they have cut spending in recent months by either trimming their discretionary budget, delaying a major purchase, driving less, scaling back charitable donations, or deferring saving for the future. This represents an increase from the three-quarters (74%) who said so in February.

A financial temperature check of Canadians finds many sweltering in the heat of inflation. Half (52%) say they couldn’t manage a sudden expense of more than $1,000. For two-in-five (38%), a surprize bonus of $5,000 would be used to alleviate the pressure of debt. For one-in-ten, it would immediately be put towards daily expenses.

Regionally, some parts of the country seem to be feeling more financial pain than others. Those in Saskatchewan (58%) and Atlantic Canada (50%) are much more likely than those in other parts of the country to use a sudden gift of $5,000 towards paying off debt. As well, people in those provinces – and Alberta – are more likely than others elsewhere to say they have been cutting back spending in recent months.

More key findings:

• Approaching four-in-five (78%) say grocery stores are taking advantage of inflation to make increased profits. Fewer than one-in-10 (7%) believe instead the increased margins are due to good management by grocery chains.

• The one-in-five (22%) Canadians who say they are never really stressed about money are in the minority. Three-quarters (76%) say the opposite.

• One-quarter (27%) of Canadians say they have trimmed back donations and charitable giving as they have adjusted their budget recently.

• More than half (56%) of Canadians say they can’t keep up with the cost of living, while two-in-five (39%) feel they are keeping pace.