Inflation is pushing a growing number of Canadians into debt.
That’s the conclusion of a new survey by market research firm Finder.com. In a survey of 1,013
Canadians, 36% said their top reason for taking out a loan is to cover bills related to a mortgage
or food purchases.
Other reasons for taking out a loan include debt consolidation (24%), and to cover bills and
living expenses due to a job loss (19%).
The survey also found that Generation Z Canadians (people aged 25 and younger) are being hit
hard by higher living costs, with 26% reporting that they’re being significantly impacted by higher
consumer prices.
The results of the survey come after Statistics Canada reported that inflation rose 7.6% in July
from a year ago.
During July, the price of food increased by 9.9%, while the mortgage interest cost index grew
1.7%, its first increase since 2020 as interest rates rise.