A pair of new reports from the Bank of Canada point to rising inflation expectations by Canadian businesses and consumers.
In its business outlook survey released Monday, the central bank said businesses’ expectations for near-term inflation have increased, and firms expect inflation to be high for longer than they did in the previous survey.
“Many firms continue to report plans for raising wages to attract and retain workers,” the bank said in its report which suggested businesses expect wages and prices to grow at a faster pace.
“In addition, a growing number of businesses mentioned the rising cost of living as an important source of wage growth. Nearly half of firms anticipate their wage increase will remain above pre-pandemic levels beyond the next 12 months.”…