New surveys from the Bank of Canada show most consumers and businesses expect Canada to enter a recession, though their views on inflation in the short run are diverging.
The third-quarter business outlook and consumer expectations surveys, released Monday, showed consumers have become more pessimistic about inflation in the short run, while business expectations for inflation have eased.
With inflation well above the bank’s two percent target, the central bank is monitoring how inflation expectations develop amid concerns that elevated expectations could feed into even higher prices and wages.
The annual inflation rate was 7.0 percent in August, the most recent available number. Statistics Canada is set to release September inflation data on Wednesday….