Shoppers feel financial pressures heading into holiday season

With rising inflation, shoppers are starting to feel the financial pressures heading into the holidays. It is forcing people to limit their spending, focus on inexpensive gifts, or feel good about putting their money toward supporting local.

Statistics Canada released its latest consumer index report today showing that the country’s annual inflation rate held steady at 6.9 per cent last month.

The study says a rise in gas prices and higher mortgage interest costs put upward pressure on inflation.

Business owners tell CHCH News they’re expecting shoppers to focus their holiday budgets on supporting local this year. Shoppers say they feel the same way, “I’d like to shop locally as much as possible to support the smaller businesses.”

According to a survey by Equifax Canada, 60 per cent of respondents say the financial pressures due to inflation mean they will be choosing to spend less on gifts this year overall.

Equifax also found that 41 per cent of people say they will limit their holiday spending because they are already carrying too much debt. That is up from 36 per cent from 2021.

Equifax recommends that shoppers stick to a well-thought-out budget when Christmas shopping this year. They also say people should continue to buy from local businesses because this will help the business owners to keep their prices reasonable.