Apr 28, 2026
Many Canadians say they're struggling to keep up with the cost of living, even as headline inflation remains relatively moderate.
New data from the MNP Ltd. Consumer Debt Index shows that three in five Canadians are experiencing what it calls "financial whiplash," as shifting economic conditions continue to disrupt household budgets.
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"Many Canadians are not just feeling financial pressure — they are navigating a shifting environment, which increases uncertainty and makes it more difficult to plan, budget, and stay ahead financially," said Grant Bazian, president of MNP LTD, in a statement.
Inflation is rising again — led by gas prices
According to the MNP survey, nearly three-quarters (74%) say rising prices for essentials like food and gas are putting pressure on their finances, while a similar share report cutting back on spending and becoming more cautious about taking on new debt.
Inflation moved higher in March, reversing some of the slowdown seen earlier this year. Data from Statistics Canada shows the annual inflation rate rose to 2.4%, up from 1.8% in February, driven largely by a surge in gasoline prices.
Gas prices jumped 21.2% in March alone — the largest monthly increase on record — pushing energy prices up 3.9% year over year and lifting transportation costs.
Strip out gasoline, and the increase looks more contained. Inflation rose 2.2% year over year on that basis, pointing to how much of the recent jump is tied to a single, volatile category.
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Everyday costs are still climbing
However, fuel isn't the only pressure point. Food prices rose 4.4% year over year in March, with fresh vegetables up 7.8% as supply issues and growing conditions tightened availability.
For households across Canada, these are the kinds of expenses that are harder to avoid or delay — which helps explain why many aren't feeling much relief..
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More than four in ten Canadians say they are within $200 of financial insolvency each month, according to MNP, while nearly one-third say they don't earn enough to cover their bills and debt payments.
That leaves little margin for unexpected costs or further price increases, whether from fuel, groceries or borrowing.
While the rate of inflation may still sit within the Bank of Canada's target range, the impact on household budgets for many is far from moderate.
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What happens next for rates and inflation
The next question is whether this pressure eases — or builds further. The Bank of Canada will look to determine whether those higher energy costs will feed into broader, long-term inflation. While policymakers have suggested they may look through short-term spikes, a sustained increase could complicate the outlook for interest rates.
For many, the reality is already clear: costs remain elevated in the areas that matter most, and there's little room left in the budget to absorb further increases.
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Steven Brennan is a freelance finance writer based in Vancouver, BC. He holds a BA and an MA from Maynooth University, Ireland. His work regularly appears at Canadian Mortgage Trends, Lowest Rates, Loans Canada and other Canadian and US brands, while also working as a ghostwriter for financial influencers.
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