Worries about inflation impact dampen most Canadians’ summer plans

With less spending power, majority are finding ways to maximize their budget

Worries about inflation impact dampen most Canadians’ summer plans

Canadians want to enjoy the summer, but the majority (80%) are worried about how rising prices will affect their capacity to do so this year, according to a new CIBC survey.

This year, Canadians anticipate spending $1,900 on summertime activities, an increase of $400 from 2021. The majority of respondents (76%) who anticipate higher spending cite inflation as the primary driver.

Typical summer spending includes everyday items such as groceries and gas; dining out; travel; renovations and landscaping; and home or cottage expenses.

More than half of Canadians (58%) believe they have significantly less money in their bank account at the end of the month compared to years before, and 62% report that saving money is harder than ever.

Meanwhile, 64% of respondents said they are looking for new methods to blunt the impact of inflation this summer because they have less spending power than usual.

According to the survey, as part of their strategy, 36% intend to use coupons or actively hunt for bargains; 33% intend to stick more closely to a budget; and 30% intend to move from using name-brand products to cheaper alternatives.

"Inflation is a hot topic this summer and it may seem like the cost of living is rising with the temperature, which is why it's important for people to stay on top of their spending," said Carissa Lucreziano, Vice-President, CIBC Financial and Investment Advice.

The survey also found:

  • 81% of Canadians anticipate that summer spending will be more on daily necessities like groceries;
  • 72% of people are hesitant about the summertime activities they want to engage in;
  • 57% prefer to spend money on experiences rather than material things;
  • 41% plan to pay for their summer expenses out of their regular paychecks; and
  • 34% of people closely adhere to their budgets.