Inflation Definition

A majority of Canadians are worried about inflation as the calendar turns to 2021, according to a new survey released Tuesday by CIBC.

The study found that 60 per cent of Canadians listed inflation and the rising costs of goods as their greatest financial concern over the course of the next year.

“Canadians have faced so many challenges this year, it’s understandable they are concerned about the economy in 2021,” said Carissa Lucreziano, vice president of financial and investment advice at CIBC, who authored the report.

“If this year has taught us anything, it’s that we don’t always know what’s coming next and the best buffer for the unexpected is to be prepared with a plan and be open to adjusting it when circumstances change.”

The study, culled from a November online survey of over 3,000 Canadians, also found that Canadians’ top financial priority for 2021 is paying down debt. The 2021 survey marks the 11th consecutive year that tackling debt has topped that category.

The second-greatest concern among survey respondents was keeping up with monthly bills and cost of living, as flagged by 18 per cent of respondents. 

Meanwhile, sentiment for the coming year dipped noticeably from where it was before the onset of the COVID-19 pandemic. Only 24 percent of respondents said they believe their financial situation will improve in 2021, down from 32 percent in 2019. More than three-quarters of respondents (78 percent) said they were concerned about a possible economic downturn amid recovery efforts.

Reference: BNN Bloomberg