Although the overall inflation rate has slowed from its peak of 8.1 percent in the summer of 2022, the Bank of Canada's key interest rate remains high, forcing Canadians to adjust to rising borrowing and housing costs.

A survey conducted by Ipsos on Friday showed that about 23 percent of respondents believe that the Bank of Canada will lower the benchmark interest rate this year.

The latest inflation report also showed that annual price increases in grocery stores have slowed to 1.9 percent as of March, which is much lower than the double-digit readings seen at the peak of inflation.

However, cumulative pressure in the grocery store is forcing many Canadians to change their shopping habits and make other financial sacrifices to cover their expenses.

About 83 percent of survey participants said their weekly grocery bill has risen over the past six months, with an average increase of $78.90.

The survey indicated that low-income households typically experience larger increases in the cost of their grocery trips, with one-third of those earning less than $40,000 saying they spend an additional $51 to $100 a week, compared to about one in five households earning between $60,000 and $100,000.

Canadians are adapting to the rising cost of living by relying on discounts and cutting other items from their family budget.

About 61 percent said they are looking for discount flyers, a 13 percent increase from last year, while 34 percent said they have switched to a cheaper grocery store, a 7 percent increase from 2023. Almost one-third of survey participants said they are buying less meat, fresh fruits, and vegetables, and 11 percent reported using food banks.

Meanwhile, 61 percent are eating out less, a 13 percent increase from 2023, and 53 percent are postponing purchases like new clothes, also a 13 percent increase from last year. One in ten respondents reported delaying or not renewing a prescription due to concerns about the cost of living.

As a larger portion of their monthly budget is allocated to living expenses, some Canadians have little left to save - about 21 percent said they would temporarily stop their retirement savings because life has become more expensive, an increase of six percentage points from March 2023.

Approximately 29 percent reported using their personal savings to cover expenses, while 15 percent are using funds earmarked for retirement.