Canadians’ holiday spending soars despite economic snowstorms

'Tis the season for holiday shopping and Canadians are ready to spend, despite high inflation rates. Canadian consumers are expected to spend an average of $645 on holiday gifts this year, a significant increase from the $589 spent in the previous holiday season, says a study from the Chartered Professionals Accounts of Canada (CPA Canada).

However, the pressures of rising costs of living could leave some shoppers with a holiday spending hangover, the survey suggests. A substantial number (74 per cent) of Canadians express concerns that inflation would make it more difficult to purchase holiday gifts this year. A considerable portion, almost one-in-three Canadians (29 per cent), say they could take on debt to fund their festive purchases, compared to 22 per cent last year.

CPA Canada offers a variety of ways consumers may try to cut spending without sacrificing holiday spirit. Almost half of Canadians will opt for discounted items if faced with financial difficulties, 46 per cent would cut back on the number of gifts they give, and 27 per cent would use loyalty points. Additionally, 22 per cent would consider giving non-traditional gifts, such as homemade or shared experiences. Meanwhile, 27 per cent of respondents say they would use credit cards to make up for financial shortfall.