Rising Food Prices Cause Canadians to be More Frugal,
Make Smarter Food-Buying Decisions

Toronto, ON - Canadians are likely to keep a closer eye on the price tags the next time they're at the grocery store as most believe food prices have gone up and it's had an impact on their shopping habits, according to a new survey conducted by Ipsos Reid on behalf of RBC. Eight in ten (84%) believe food prices have increased in the last year compared to the year before, compared to only 15% who believe they've stayed the same and 1% who believe they've decreased.

Overall, most Canadians feel that rising food prices mean that inflation may rise and they'll need to make better choices when making their trips to the grocery store. Nine in ten (91%) `agree' (23% strongly/68% somewhat) rising food prices `means inflation may creep up' while just one in ten (9%) `disagree' (1% strongly/8% somewhat). An equal proportion (91%) also `agree' (33% strongly/58% somewhat) that rising food prices `means they'll have to tighten their belts and make smarter decisions when buying foods', with 9% `disagreeing' (2% strongly/7% somewhat).

The data reveal that, on average, Canadians spend $411 per month on groceries, with Quebecers ($448) leading the pack, and a sizeable portion of Canadians indicate that food price increases have had an impact on their day-to-day budgets. One in three (33%) Canadians cite rising food prices as having a `significant impact on their budget, while more than four in ten (43%) say increasing food prices `have not had a big impact, but they've cut back on other expenses'. Only one in four (24%) indicate `there has been no impact on their budget' due to rising food prices.

In terms of specific effects on their day-to-day budget, a majority (57%) of Canadians `comparison shop for food more than before', while four in ten (41%) `tend to follow a budget more than before and buy less on impulse'. Two in ten (15%) will `use their vehicle less and make less trips or use public transit or walk more', while one in ten (11%) `don't use their credit card to pay for day-to-day expenses as much as before'.

Despite Dipping Job Anxiety, Economic Mood in Canada Darkening

With food prices on the rise in Canada, economic sentiment is on the decline as Canadians are not as confident in the national economy in comparison to last quarter. The national overall index has dropped 6 points and how rests at 82, making this the first time in nearly two years that there has been an overall decrease in the national index.

Six in ten (60%) Canadians believe the economy is in `good' shape, although this is down a significant eight points from last quarter, while four in ten (40%) believe it's in `bad' shape (up 8 pts. from last quarter). Additionally, more Canadians believe the economy will worsen in the next year (30%) rather than improve (26%), making this the first time since July 2012 where more Canadians are pessimistic for the future than optimistic.

Despite general perceptions of a worsening national economy, this has not translated into increased levels of job anxiety. Two in ten (19%) Canadians indicate that they or someone in their household is worried about losing a job, relaxing after a temporary spike to 24% in February 2013.

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These are some of the findings of an Ipsos Reid poll conducted between April 2nd to 15th, 2013, on behalf of RBC. For this survey, a sample of 3,024 Canadians from Ipsos' Canadian online panel was interviewed online. Weighting was then employed to balance demographics to ensure that the sample's composition reflects that of the adult population according to Census data and to provide results intended to approximate the sample universe. The precision of Ipsos online polls is measured using a credibility interval. In this case, the poll is accurate to within +/- 2 percentage points had all Canadians adults been polled. All sample surveys and polls may be subject to other sources of error, including, but not limited to coverage error, and measurement error.

For more information on this news release, please contact:

Sean Simpson
Associate Vice President
Ipsos Reid Public Affairs
416.572.4474
[email protected]

About Ipsos Reid

Ipsos Reid is Canada's market intelligence leader, the country's leading provider of public opinion research, and research partner for loyalty and forecasting and modelling insights. With operations in eight cities, Ipsos Reid employs more than 600 research professionals and support staff in Canada. The company has the biggest network of telephone call centres in the country, as well as the largest pre-recruited household and online panels. Ipsos Reid's marketing research and public affairs practices offer the premier suite of research vehicles in Canada, all of which provide clients with actionable and relevant information. Staffed with seasoned research consultants with extensive industry-specific backgrounds, Ipsos Reid offers syndicated information or custom solutions across key sectors of the Canadian economy, including consumer packaged goods, financial services, automotive, retail, and technology & telecommunications. Ipsos Reid is an Ipsos company, a leading global survey-based market research group.

To learn more, please visit www.ipsos.ca.

About Ipsos

Ipsos is an independent market research company controlled and managed by research professionals. Founded in France in 1975, Ipsos has grown into a worldwide research group with a strong presence in all key markets. In October 2011 Ipsos completed the acquisition of Synovate. The combination forms the world's third largest market research company.

With offices in 85 countries, Ipsos delivers insightful expertise across six research specializations: advertising, customer loyalty, marketing, media, public affairs research, and survey management.

Ipsos researchers assess market potential and interpret market trends. They develop and build brands. They help clients build long-term relationships with their customers. They test advertising and study audience responses to various media and they measure public opinion around the globe.

Ipsos has been listed on the Paris Stock Exchange since 1999 and generated global revenues of e1,789 billion (2.300 billion USD) in 2012.