Rising food and gas prices are continuing to affect B.C. residents and change their spending plans, according to an RBC (TSX: RY) report released this morning.
The July RBC Canadian Consumer Index found that 44% of B.C. residents feel increasing costs have had a significant impact on their budget.
The report shows a rise in that impact since earlier this year, when RBC’s quarterly Canadian Consumer Outlook Index found that 33% of B.C. residents stated they were feeling a significant impact on their budget from rising food and gas prices. (See: “B.C. residents feeling the pinch of rising food, gas prices” – BIV Business Today, April 12).
The report released today found, that going forward, 54% of B.C. residents plan to comparison shop, 52% plan to stick more closely to a budget, and 36% plan to use their vehicles less. It noted that, in light of rising fuel prices, 32% are delaying the purchase of a new vehicle.
The study further found that managing debt remains a priority for B.C. residents, with 31% planning to reduce their debt this year.
“B.C. residents are taking practical steps to counter the impact that higher food and gas prices are having on their budgets,” Graham MacLachlan, RBC’s regional president, B.C., said in a press release.
The report also found that three in 10 British Columbians (29%) are more likely to forego a vacation this year due to changing economic conditions. Quebec and Alberta (26%) are the least likely to delay vacation plans, while Ontarians (34%) are the most likely to.
As to B.C.’s economic outlook, almost two-thirds of B.C. residents rate the current economy as good (65%), one point below the national average, but 46% of West Coasters expect the national economy to improve, compared to the national average of 42%.
A spokesperson from RBC was not available by press deadline.
Jenny Wagler
Twitter: JennyWagler_BIV