Consumers concerned about rising gas, food prices, RBC says

Canadians are tightening their belts in the face of rising food and gasoline prices, the Royal Bank suggested Wednesday.

Based on its quarterly survey of consumers, the bank said:

• More than half of Canadians are doing more comparison shopping for food.
• Almost half arelimiting impulse buys.
• About 30 per cent will make fewer car trips, or take publictransit and walk more.

Gas prices thatjumped almost 30per cent in May alone and foodpricesthat rose 4.2 per cent in the month are pushing the changes.

The RBC Canadian Consumer Outlook Index survey is the bank's second consecutive survey this year to identify rising gas and food prices as changing consumer behavior.

Some of the changes will go beyond comparison shopping, the June survey suggested. Almost a third of respondents are more likely to delay vacation plans until 2012 and 31 per cent will delay buying a new car.

The index is now at 94, down two points from April 2011. It was 100 in November 2009.

Higher prices are encouraging consumers to focus on their personal debt whichaverages$13,058, excluding mortgages.

The actions Canadians say they'll take include:

• Debt reduction a priority for 32 per cent.
• Cutting spendingatarget for 28 per cent.
• Saving or investingmore a goal for 25 per cent.

And 21 per cent say they will be take all these steps. But fewer (30 per cent) feel confident they are managing their debts well, comparedwith the previous quarter (38 per cent).

In considering the broader economy,39 per cent expect their personal financial situation to improve over the next year, while 42 per cent are optimistic that the national economy will improve over the same time period.

Albertans are the most optimistic (59 per cent believe the economy will improve) while Quebecers are the most pessimistic (27 per cent expect an improvement). Nationally, 42 per cent are optimistic.

The survey was conducted onlineusing pollsterIpsos Reid's national I-Say Consumer Panel. Data was collected between June 9 and June 14, from 4,008 Canadians.