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Inflation breeds anger, fear and helplessness, and everyone deals with it differently
Canadians are the most budget conscious when it comes to groceries and groceries. Photo by Carlos Osorio/Reuters files
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According to a new study by Empathy Inc., inflation triggers anger, fear and helplessness among Canadians, and they respond by fighting, fleeing or simply freezing to death.
The study found that 73 percent feel some kind of outrage at the current cycle of inflation, although the level of frustration varies according to their financial situation. Those who feel comfortable financially tend to be just annoyed, while 55 percent are frustrated.
Fear was the second most common reaction (59 percent) to inflation, and this was amplified among those who consider themselves financially unstable. Canadians who feel their basic needs are not being met say inflation makes them nervous, anxious and insecure. But those feelings are released once people feel financially stable, and even more so when they feel financially comfortable.
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More than half of the 200 Canadians surveyed also feel hopeless because they are not sure what to do. Even people with financial security no longer feel up to date with the economic situation and cannot escape this feeling of hopelessness.
The report says our first instinct when dealing with inflation is to ‘run away’ or cut the cost of living, with 35 per cent saying their main response is to lower overall spending.
“Canadians who feel insecure about their finances are more likely to cut back on spending in all major categories, such as groceries, health care and clothing, than those who feel financially comfortable,” said the report.
Most Canadians are also now more price conscious, with 87 per cent looking for cheaper products and services. Canadians said they were most price conscious on food and groceries (79 per cent), followed by utilities (49 per cent) and vehicle ownership (47 per cent) .
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“Food prices are felt in a more direct and concrete way; In a world where most spending is automated through prepaid and credit cards, grocery shopping remains a tactile and active spending experience,” the report said. “We are a little afraid about stacking items on the belt; We notice the large sum as soon as we take out our card.”
Another round of price hikes is expected to hit grocery stores in February as the annual holiday cutback on cost increases comes to an end, the chief executive of Metro Inc. said. Eric La Flèche to Jake Edmiston of the Financial Post this week.
Many Canadians also plan to struggle to make more money to deal with inflation, with 46 percent agreeing that “because of inflation, I just need to find a way to make more money.”
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On the other hand, 19 percent feel frozen or powerless to do anything, with slightly more Millennials and Gen-Zers feeling the same way.
“They are in the busiest phase of life, carrying financial anchors such as a mortgage, children and demanding careers that limit their options,” the report said. “All this leads to risk aversion and inaction during a crisis.”
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Canadian crude oil shipments to Asia are expected to rise to their highest level in more than a year as US refinery shutdowns force producers to find new outlets for their oil. At least seven million barrels of highly acidic crude oil produced in Canada’s tar sands were sold for shipment to Asian buyers in February, according to people familiar with the matter. That’s the maximum since January 2022, data from Vortexa shows. — Bloomberg
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- The Treasury of Canada releases financial results for November 2022
- Jagmeet Singh will join NDP MP Laurel Collins (Victoria) to speak to reporters to discuss Canadians’ growing concerns about the privatization of health care and rising costs
- The World Health Organization’s Emergency Committee will meet to consider whether the COVID-19 pandemic remains a global emergency
Data from today: Ottawa Fiscal Monitor, US Personal Income and Consumption, University of Michigan Consumer Sentiment Index - Merits: Chevron Corp., American Express Co., Colgate-Palmolive Co., LG Electronics Inc.
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The most important decision in making the will is the appointment of the executor, who is responsible for ensuring that the will of the testator is followed. The Financial Post’s Jason Heath shared some of the key considerations in making this decision and what those selected need to know about fulfilling their commitments. find out more
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Today’s post was written by Noella Ovid, with additional coverage from The Canadian Press, Thomson Reuters and Bloomberg.
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Source: financialpost.com
