Canadians Cut Back on Restaurants and Travel Amid High Cost of Living Pressures

Canadians are cutting back on discretionary expenses due to high cost of living pressures. According to an INSAUGA Canada poll, eating out or ordering takeout was the most common response with 35.1% of respondents saying they had cut back the most in this area.

Travel and vacations were a close second at 24%, followed by shopping and clothing at 12.4%. The results suggest that Canadians are prioritizing essential expenses over discretionary ones, with more than one in ten respondents citing groceries as an area where they had cut back the most.

The high cost of living has been a persistent issue for Canadians, with Statistics Canada reporting a three per cent year-over-year increase in the Consumer Price Index in August 2026. Food prices have been particularly affected, with grocery prices increasing 2.8% from August 2025 to August 2026 and being 29% higher than they were in August 2021.

The pressure on household budgets is also reflected in a Bank of Canada survey which found that 21% of respondents had cancelled or postponed trips due to rising travel costs, while 28% had postponed or reduced major spending more broadly.