BoC: CANADIANS, BUSINESSES WORRY INFLATION WILL KEEP RISING, STAY HIGHER LONGER

Jul 04, 2022

By Bob Komsic

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OTTAWA – A pair of new reports from the Bank of Canada point to rising inflation expectations by Canadian businesses and consumers.

The central bank’s business outlook survey found businesses’ expectations for near-term inflation have increased and firms also expect inflation to be high for longer than they did in the previous survey.

The report says businesses expect wages and prices to grow at a faster pace, however longer-term expectations for inflation by businesses remain stable between two and three per cent.

The outlook survey also suggests that businesses expect strong, but somewhat slower sales growth.

Meanwhile, the bank’s Canadian survey of consumer expectations suggests consumers’ expectations for inflation have also risen with worries about prices for food, gas and rent.

Statistics Canada reported last month that the annual pace of inflation for May rose to 7.7 per cent, its highest level since 1983.

(The Canadian Press)

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