If you’re cutting expenses because everything costs more, you’re far from alone. It is even rather those who act as if nothing had happened who are in the minority.
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Inflation affects nearly three out of four Quebecers, reveals a Léger–Le Journal–TVA–QUB poll published yesterdaywhile 73% of people plan to reduce their spending.
“Today, Quebecers are cutting back. Whether you’re young, whether you’re old, whether you’re rich or poor, everyone is cutting expenses, ”sums up the pollster Jean-Marc Léger.
Worse among the less fortunate
Among Quebecers who earn less than $60,000 a year, the proportion of those who are forced to cut rises to 80%.
Desjardins also foresees a slowdown in consumption, which will continue to increase, but less quickly.
Hélène Bégin, senior economist at the financial cooperative, however, wants to be reassuring.
“We’re not heading for a pure and simple decline in consumer spending, like what we experienced in the 1990s and which led to a recession,” she said.
While consumer spending jumped 6% in 2021 in Quebec, Desjardins predicts that it will only do so by 5% in 2022.
Economic containment
“It’s not surprising that people are adapting and changing their behavior a bit. The survey is interesting, because it allows us to see where they are going to cut,” said the economist.
Four items of expenditure come out on top: Quebecers will cut back on going out to restaurants or bars and cultural activities (51%), they will reduce their trips by car (17%), buy less at the grocery store (12 %) and change their holiday plans (11%).
“We have gone from sanitary confinement to economic confinement”, illustrates Jean-Marc Léger.
But it’s not all bad
If the pace of spending by Quebecers will ease, all is not bad, insists Hélène Bégin.
“Yes, inflation is high, but the unemployment rate is still at 3.9%. The increase in the average salary has been hovering around 5.5% for several months. Employment continues to progress, wages are rising, which makes it possible to compensate a little for the rise in inflation, ”she lists.
That’s not counting the help from the Quebec government with its checks for $200 in January and $500 in March.
“If, individually, people have the impression that the amount is low, $500, the fact remains that it is $4 billion that has been injected into the economy with these two measures and that this inflates income” , explains the Desjardins economist.
Savings cushion
This is why, overall, the savings rate of Quebecers is much higher than that of Canadians: 15% compared to 5%.
“There is still a lot of money in savings accounts, many people have a financial cushion to limit the damage of inflation,” she summarizes.
Soft pedal on gasoline
This does not prevent Quebecers from paying more attention to their pennies.
At over $2 a litre, the cost of gas is of particular concern to them, with just 19% of survey respondents saying the price at the pump has no impact on their lives.
Most will reduce the use of the car (44%) or will be forced to cut elsewhere to refuel (28%).
The hunt for specials
If Quebecers think more regarding the pump, it’s the same thing in the grocery store aisles.
Over half of respondents (57%) said they shop for specials more and 28% favor house brands.
Respondents also said they were ready to cut down on meat (25%) and prepared meals (19%), even on alcohol (14%) or vegetables (14%) to save money.
– With the collaboration of QMI Agency
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