A new survey by the Canadian Imperial Bank of Commerce reveals that nearly 80% of Canadians are changing their summer spending plans due to the rising cost of everyday expenses. The survey also found that 46% are reducing daily spending to mitigate economic challenges.
Canadians adapt to high cost of living
The cutbacks come on the heels of a Toronto-Dominion Bank survey last month, which indicated that 35% of Canadians plan to spend less this summer, with 62% redirecting money to essentials like food and housing. Canada's inflation rate spiked to 3.2% in May, driven largely by gas prices, which rose 33.2% year-over-year. Food prices increased 4.3%, while airfare and travel costs climbed 7.4%.
Gas prices remain high despite recent declines
Although gas prices have fallen in recent weeks due to the gradual reopening of the Strait of Hormuz, the average price on Friday remained 160.5 cents per litre, according to the Canadian Automobile Association.
“What stands out in this year’s findings is the combination of caution and resilience,” said Carissa Lucreziano, vice-president of financial planning and advice at CIBC. “Canadians are adapting, prioritizing what matters most to them and looking for ways to enjoy the season without losing sight of their longer-term financial goals.”
Many Canadians still plan to enjoy summer
Despite economic pressures, 62% of Canadians say they will not let economic concerns stop them from enjoying the summer. “Summer doesn’t have to mean overspending,” Lucreziano added. “Canadians are proving that with thoughtful planning, it’s possible to balance fun and financial responsibility.”
Economic outlook dims for Canada
Economists have cut Canada's economic outlook for the remainder of the year following a surprise slump in early 2026. A Bloomberg survey shows economists now expect Canada's economy to expand by just 0.7% for the year, the weakest yearly pace since 2015 excluding the COVID-19 pandemic. Previous forecasts predicted growth of about 1.2%. Canada's economy shrank by 0.1% in the first quarter, far below expectations.
