As inflation runs hot, Canadians plan to cool spending on holiday gifts: poll

Three in 10 Canadians say they will rein on their gift shopping this holiday season and spend less compared with previous years as inflation remains high, a new Ipsos poll finds.

‘Tis the season to spend less and worry. That’s how many Canadians are feeling ahead of the winter holidays this year as they grapple with high inflation and soaring interest rates.

In a new Ipsos poll done exclusively for Global News and released Monday, 30 per cent of Canadians said they will rein in their gift shopping this holiday season and spend less compared with previous years. However, 52 per cent of people said they anticipated spending about the same as before.

Inflationary pressures that have made it difficult for Canadians to buy groceries and property and pay for gas are now also affecting how people celebrate the holidays with their loved ones this year, said Darrell Bricker, CEO of Ipsos public affairs.

“Being concerned about celebrating the holidays with your family due to economic considerations shows you how far these concerns have percolated into the everyday lives of Canadians — and that’s got to be very concerning for all of us,” he told Global News.

As inflation remains well above the Bank of Canada’s comfort zone of two per cent, nearly half the respondents (45 per cent) are worried about being able to afford holiday gifts for loved ones this year.

That concern is greater among women (49 per cent), younger Canadians aged 18 to 34 (66 per cent) and parents (58 per cent).

Canada’s headline inflation rate has eased to 6.9 per cent from a peak of 8.1 per cent in June, but food costs are still accelerating, and underlying price pressures remain sticky.

At the same time, the Bank of Canada has hiked interest rates by 350 basis points in just seven months, one of its sharpest tightening campaigns ever, to try to force inflation back to the bank’s two per cent target.