Wednesday, May 7, 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

Endeavour Mining Q1 Earnings: Cash Flow Is King

G Mining Oko West Feasibility: Move Fast, Break.. Nothing?

New Gold Q1 Earnings: What’s Behind The Market’s Surprising Reaction?

Recommended

Giant Mining Encounters Native Copper As Hole MHB-34 Hits 563 Metres Depth

Verses Hits Commercialization Stage With Genius AI Platform

Related News

Jerome Powell Hikes Rates 75 Basis-Points, Signals More Economic Pain to Come

All markets and consumers were fixated on the outcome of today’s FOMC meeting, with bets...

Wednesday, September 21, 2022, 04:09:25 PM

Fed Minutes Suggest Policy Makers Can’t Decide Between Slowing Hikes or Keeping Rates High

The freshly-released minutes from this month’s FOMC meeting suggest most members believe its may soon...

Wednesday, November 23, 2022, 03:52:44 PM

Canadian Inflation Falls to 0.7% in December Amid Renewed Lockdowns

Price pressures for the month of December slowed down across Canada, as much of the...

Wednesday, January 20, 2021, 04:04:00 PM

Canadian Factory Prices Jump By Most Since 1980

Industrial prices across Canada are accelerating at the fastest pace in over 40 years amid...

Sunday, May 16, 2021, 11:35:00 AM

UK Housing Market Slowdown: Lenders are Approving Fewer Mortgages as Inflation, Rising Interest Rates Bite

The UK housing market is rapidly slowing, as surging inflation and subsequent rising interest rates...

Tuesday, November 29, 2022, 05:18:26 PM