Bank of Canada Survey Shows Firms Expect Weaker Sales and More Price Hikes as Inflation Hits 3.2%
Updated
Updated · The Globe and Mail · Jul 10
Bank of Canada Survey Shows Firms Expect Weaker Sales and More Price Hikes as Inflation Hits 3.2%
3 articles · Updated · The Globe and Mail · Jul 10
Summary
Many Canadian businesses told the Bank of Canada they expect weaker sales in coming months while also planning to raise prices, signaling a tougher mix for growth and inflation.
The survey follows Statistics Canada data showing annual inflation accelerated to 3.2% in May from 2.8% in April, the highest headline reading since December 2023.
Much of the recent price pressure was linked to the Iran conflict spilling beyond gasoline, though economists cited in the report said easing oil prices have limited broader alarm.
The findings add to evidence that Canada faces lingering inflation risks even as demand softens, a combination that could complicate the Bank of Canada's policy path.