Nearly half of Canadians (41%) are skeptical that the Bank of Canada can successfully lower
inflation, a new poll by the Angus Reid Institute (ARI) has found.
The survey showed that 41% of Canadians don’t trust the Bank of Canada to fulfill its mandate
of returning inflation to its 2% target. Only 46% of respondents (less than half) said they have
confidence in the Ottawa-based central bank.
Canada’s inflation rate reached 7.7% on an annualized basis in May, its highest level since
1983.
Many economists now expect the Bank of Canada to raise its trendsetting interest rate by three-
quarters of a percentage point (0.75%) at its next policy meeting in July. Some economists are
forecasting a full percentage point increase next month.
Inflation is becoming a growing political issue in Canada, with 45% of poll respondents saying
they are financially worse off today than they were a year ago — the highest percentage of
people to say that in more than a decade.
Roughly a third (34%) of people polled added that they expect their finances to deteriorate
further over the coming year.
Grocery and gas prices, in particular, are hurting Canadian households. The ARI survey found
that more than half of Canadians (52%) find it difficult to buy food right now.
The survey was conducted between June 7 and 13 and polled 5,032 Canadians nationwide.
