TORONTO — Almost half of Canadians say inflation and the cost of living will continue to be the biggest financial challenge they face this year, according to a new survey from TD Bank.
The survey also finds many respondents, particularly younger Canadians, plan to cut down on their spending.
Inflation has fallen back to around the Bank of Canada’s two per cent target, but the cost of living is still straining household budgets.
Despite the ongoing concerns about the cost of living, the survey says financial optimism has improved, with 24 per cent saying they feel more confident about their finances in 2025.
Emily Ross, TD’s vice-president of everyday advice journey, says five consecutive Bank of Canada interest rate cuts last year helped raise optimism among Canadians.
Ross says the survey indicates things are moving in the right direction and Canadians are starting to feel more positive about achieving their financial goals.
This report by The Canadian Press was first published Jan. 15, 2025.
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