This group of Canadians is carrying a higher inflation rate than everyone else, TD says. Find out more.
TD’s findings mirror research from personal finance comparison site Finder. Middle-income Canadians appear to be struggling with rising costs, and are turning to debt to make ends meet. Indeed, 30 per cent have had to turn to credit or loans to pay for expenses this year, according to“Middle-income earners are really struggling,” Romana King, senior finance editor at Finder, said in a release.
Of course, low-income Canadians are also extremely vulnerable to sustained high prices. The soaring food prices hitting the pocketbooks of the middle class are also denting lower-earning Canadians’ finances. And that group spends more on food than any other demographic, TD said.Article content Shelter costs are also taking a toll on those who earn less thanks to soaring rent prices, which climbed 4.9 per cent in July, versus 4.3 per cent in June. Lower-income Canadians also spend more on housing needs than everyone else. That means if rent prices keep marching higher, it’s this group that will end up carrying a higher inflation burden.
There are signs that inflation is starting to ease, however. Energy prices have been falling and supply shortages are letting up. That will bring relief to those middle-income households carrying the brunt of inflation, and everyone else, TD said. “The sooner that the inflationary temperature can be brought to normal, the better Canadians of all walks of life will be,” the note said.Article content
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