Underscoring how economic conditions continue to drag, the sting of a second year of high consumer prices affecting everything from the cost of bread to room rent has majorities saying they will spend less on holiday preparations this year (55%). But while even more (64%) say they have cut back on discretionary spending overall in recent months, only a third say plan to scale back on travel.

This continues a trend that emerged last year, when similar numbers said they had cut back.

For seven quarters in a row, more than two-in-five Canadians report feeling left behind as the cost of living rises. Currently, 46% feel they aren’t keeping up financially, nearly quadruple the number who say they are getting ahead (12%).

Notably, 37 and 35% respectively say they are cancelling or scaling back travel plans. Yet, in a positive twist for the travel industry, almost two-thirds say they are cutting back on discretionary spending overall, suggesting that many people continue to consider travel “essential.”

The Bank of Canada may be relieved by the recent deceleration of inflation as it considers its next policy rate decision in early December, but Canadians appear more discouraged than not as they look ahead to 2024. Two-in-five (40%) expect to end next year in a similar financial position, while one-third (33%) see their circumstances worsening. Fewer than one-in-five (18%) express optimism that the next 12 months will brighten their financial picture.