Spending on gifts and winter holiday travel is falling amid inflation

Surveys indicate that the high cost of living is negatively impacting the holiday cheer of many Canadians, and they intend to reduce their holiday gift and travel expenses. Approximately 80% of Canadians in an Ipsos survey, conducted exclusively for Global News, have stated that inflation and rising interest rates have had a significant impact on their holiday budgets. According to this survey, released on Thursday, 77% of respondents have expressed that they do not plan to travel during the holiday season, with more than half of them attributing it to inflation.
Shawn Simpson, Senior Associate of Public Relations at Ipsos, said, "The cost of housing and food is high, so by the end of the year, there is less money left for gift-giving, as people cannot save a lot of money and spend most of their funds on necessary expenses rather than their favorite things." This survey shows that out of every 10 Canadians, three (29%) intend to spend less on gifts this holiday season compared to the previous year. Nearly half of them (49%) also plan to spend the same as the previous year on gift purchases.
A Deloitte Canada survey, released last month, indicated that the average amount Canadians plan to spend on their holidays this year has reached its lowest point in the past five years, at $1,347.
According to the Ipsos survey, half of Canadians are concerned that they may not be able to afford holiday gatherings or buy gifts for their loved ones. Inflation has not only affected this year's gift purchases; many Canadians are also considering reevaluating their travel plans. One in four Canadians (23%) plans to travel this winter, and 50% of them have announced that they will spend less on holiday trips this year.

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