NEWS

The Bank of Canada released the results for their “Canadian Survey of Consumer Expectations” on July 4, 2022. They advised readers that the survey was conducted between April 28 and May 13, 2022 with some follow-up interviews during June, 2022.

Result Highlights

• Consumers’ expectations for inflation have risen in addition to concerns about prices for food, gas and rent.
• Consumers’ short-term expectations are at record high levels and long-term expectations certainly increased, bringing those thoughts back to pre-pandemic levels.
• Canadians think supply chain issues, the pandemic and higher government spending are driving high inflation.
• There is more uncertainty among consumers about how inflation will evolve and they are more likely to have opposing views.
• The majority of polled consumers believe the Bank of Canada can achieve its inflation target but many think their process will be difficult.
• Canadians plan to cut spending because they are lacking the confidence due to high inflation and rising interest rates. Prior to purchasing, they are taking more time to seek more affordable options.
• There is a clear relation to inflation concerns by those consumers in lower income brackets versus those in higher ones. The higher the income bracket, the less concerned the respondents are regarding inflation and the rising costs.
• Consumers are anticipating that wage increase will be modest though employees in the private sector have higher expectations for wage growth.
• Flexible work arrangements with employers could attract more Canadians into the labour force as it is felt that working from home could offset expenses of higher inflation.
• During interviews with respondents, many workers close to retirement indicated that high inflation may force them to keep working so they can afford the increase in the cost of living.

The “Canadian Survey of Consumer Expectations” is conducted by the Bank of Canada each quarter and gathers views on inflation, the labour market and household finances. The survey expresses the views of those who respond to this online survey and are not necessarily the views of the Bank of Canada.

Canadian Survey of Consumer Expectations Report Details

Source: Bank of Canada