A new survey conducted by Angus Reid painted a bleak picture of Canadians' financial resources after they suffered the largest increase in inflation since the 1980s, and worse still, many of them do not expect any improvement in their financial situation anytime soon.

About 47% reported being in a worse financial position compared to last year, and only 1 in 5 survey participants expect their financial situation to improve in the next 12 months.

It is noted that residents of Saskatchewan were the most pessimistic about any improvements on the horizon, and they also have the worst financial situation among Canadians.

Similarly, inflation is considered by Canadians facing significant financial hardship as the most important issue facing the country, especially as inflation remains at a rate of 5.4%, which is still much higher than the Bank of Canada's target of 2%, not to mention that food prices have consistently exceeded the overall inflation rate.

Inflation is considered the top priority for Canadians in the federal budget, with Finance Minister Chrystia Freeland stating that the budget will focus on affordability measures and healthcare spending, but increased government spending threatens to fuel inflation, which may prolong the need to raise interest rates.

The survey also found that 6 out of 10 participants say inflation is the number one challenge facing the country at present, followed by healthcare,

while 27% said that housing affordability was the top issue in the country.