Saturday, May 31, 2025

Latest

Canadian Businesses Think Inflation Will Stay Above Target Level Until 2025

Canadian businesses are feeling the pinch of rising interest rates and tighter monetary policy. However, firms project rising wage pressures, and inflation to remain above the Bank of Canada’s target range of 2% until at least 2025.

The central bank’s first quarter Business Outlook Survey showed business sentiment remained stagnant, in line with expectations of a slower sales growth period otherwise typical of an economic contraction and normalization to pre-pandemic supply and demand activity. However, respondents indicated that labour shortages are the second most important predicaments they’re facing, with the average size of forecasted wage increases sitting well above historical levels.

Firms’ inflation expectations also eased somewhat last quarter, but still feel that persistent energy prices will continue to fuel future inflation. Still, even though an increased number of businesses’ short-term inflation forecasts have trended lower, most respondents said they foresee price pressures remaining “well above the Bank of Canada’s 2% target range until at least 2025.” For the firms believing inflation will fall into the range within two years, they attest the decline to monetary actions over the past 12 months.

Information for this briefing was found via the Bank of Canada. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

How To Profit From $3300 Gold? An Inside Look At A Massive 300,000 Oz Project | Martino De Ciccio

We’re At The Start of a Great Silver Boom | Ross McElroy & Andy Bowering – Apollo Silver Corp

Equinox Gold Q1 Earnings: When Everything Goes Wrong

Recommended

ESGold Begins Concentration Tests Ahead Of First Production

Sterling Metals Hits 0.21% Copper Over 482.8 Metres In First Drilling At Soo Copper project

Related News

Rate Hike Effect: 1 In 3 Mortgage Owners Believe They’ll Have To Sell In 10 Months

According to a new Yahoo Canada/Maru Public Opinion poll, one-third (35%) of homeowners with a...

Saturday, February 4, 2023, 09:00:00 AM

US Consumer Confidence Plummets to Decade-Low Amid Worsening Inflation Fears

US consumer sentiment fell to the lowest in 10 years, as Americans become increasingly concerned...

Saturday, November 13, 2021, 03:08:00 PM

James Bullard: Fed’s ‘Credibility is on the Line’ if Interest Rates Don’t Increase Quickly

St. Louis Fed President James Bullard has taken another swipe at the central bank’s lethargic...

Monday, February 14, 2022, 03:35:00 PM

Fed Chair Jerome Powell Signals Taper Beginning in November, Rate Hike in 2022

Federal Reserve Chair Jerome Powell signalled that the central bank could begin phasing out its...

Thursday, September 23, 2021, 10:24:00 AM

Consumer Prices In Canada Rise 2.5% In July, Slowest Pace Since March 2021

Canada’s Consumer Price Index (CPI) increased by 2.5% year-over-year in July, marking the slowest inflation...

Tuesday, August 20, 2024, 08:48:34 AM