As Canadians continue to feel the pressure of high inflation on their wallets, a new survey found that 60 percent of consumers plan to spend less on gifts this holiday season.

The online survey, conducted by Equifax Canada and including more than 1000 participants, also found that 41 percent plan to spend less this holiday season due to debt, up from 36 percent last year.

Julie Kozmik, Chief Compliance Officer at Equifax Canada and consumer advocate, said in a press release: "Whether you spend more or less, it is very important to go holiday shopping with a well-thought-out budget. Inflation adds pressure on Canadians’ finances, and budgeting and sticking to it may help ease the burden of these credit card bills in January."

Similarly, a survey conducted by PayPal Canada found that 51 percent plan to make financial cutbacks this holiday season, such as avoiding unnecessary gift purchases or limiting travel. But 53 percent said they would not reduce their spending when it comes to buying gifts for close friends and family and prefer to shorten their wish list.

The PayPal survey, which included 2000 Canadians surveyed online, also found that 57 percent are worried this holiday season will not be as good as last year due to the cost-of-living crisis. Additionally, 66 percent said they feel very embarrassed to ask their loved ones for financial help.

In October, Deloitte Canada also predicted that holiday spending would drop by 17 percent this year amid economic uncertainty.

Likewise, a small number of consumers said they plan to spend more, especially young people. Only 12 percent of participants in the Equifax survey believed they would increase their holiday spending this year. Among those aged 18 to 34, 23 percent chose this option, compared to 4 percent of respondents aged 55 and over.

In the same context, many consumers also plan to do more in-store shopping this year. Among survey participants, 61 percent said they plan to shop in stores more, compared to 51 percent last year. With Black Friday approaching, 50 percent of participants said they plan to take advantage of these big discounts.

However, with concerns of a possible recession in the future emerging, local businesses say they feel less confident about this holiday season. In a survey that included more than 300 small businesses, Equifax found that 25 percent feel confident about this holiday season, compared to 36 percent last year.