More than half of respondents in The Logic’s survey said Canadian policymakers haven’t handled inflation effectively, ahead of the Bank of Canada’s highly anticipated interest-rate decision on Wednesday.

Economists expect that Canada’s central bank will start raising rates as inflation has hit multi-decade highs in recent months. The consumer price index rose 5.1 per cent year over year in January, the highest reading since 1991, according to Statistics Canada.

Fifty-four per cent of subscribers said they believe policymakers have not been handling inflation effectively, while 35 per cent said policymakers have been somewhat effective, and the remaining 11 per cent said they have been effective.

“They seem to be caught by surprise,” one subscriber wrote. 

Another respondent said it “would be a mistake to leap into intervention [with] so many up [and] down inflation indicators pointing in different directions and different effect sizes over differing periods of time.” 

Although the Conservatives have put much of the blame on the Liberals’ pandemic-related aid and spending, Canada isn’t the only country grappling with higher prices. The U.S. annual inflation rate hit a 40-year high of 7.5 per cent in January, while the eurozone’s reached 5.1 per cent. 

“It’s a global problem; I don’t think it can be fixed at the Canadian level,” a subscriber said.

Sixty-three per cent of subscribers said they are worried about inflation. Twenty-seven per cent responded they are somewhat worried, while nearly 10 per cent said they are not worried. 

“I experienced it in the [1970s] in Canada, and my parents experienced it in the ‘20s and ‘40s in Europe. The past two generations have no idea of the ravages of inflation, and our … leaders have no idea how to prevent it, much less manage it,” wrote a subscriber.

When asked what respondents are most concerned about when it comes to rising inflation, a majority said the impact on investments at 28 per cent, with food prices and housing prices trailing close behind at 27 and 22 per cent, respectively.

“I’m on a fixed income as a retiree. I wonder how [inflation] will impact my revenues and, also, my investments which are designed to assure my retirement,” wrote one subscriber. 

In Canada, shelter costs rose 6.2 per cent on a year-over-year basis in January, the fastest they have risen since February 1990. Food expenses increased by 6.5 per cent, the biggest yearly increase since May 2009. Gasoline costs rose 31.7 per cent year over year, though this represented a drop from December 2021.

While soaring inflation has some worried, 46 per cent of respondents said their organization has not adjusted its business spending. Twenty-eight per cent said their company has made adjustments, while 26 per cent said they are not sure.

One respondent said their company has raised product prices to compensate for the increased costs of their suppliers.

Another subscriber said that while his organization hasn’t made a specific adjustment, it’s “monitoring spending needs as they arise.”

Despite facing a wide range of rising expenses, only 21 per cent of subscribers said they are planning to seek a raise or look for a new job this year and 12 per cent responded maybe.

“I am hoping for a wage increase of at least half [of the five per cent inflation rate] to try and keep up,” said a respondent, who said they were planning to ask for a raise or look for a new job.

Nearly 70 per cent of respondents said they’ll stay put, with many citing that they already have a stable job, or are retired or self-employed.