Consumers are more pessimistic than businesses about inflation, Bank of Canada surveys show

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Consumers are more pessimistic than businesses about inflation, Bank of Canada surveys show
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As the Bank of Canada continues to raise interest rates to slow inflation, the new surveys also reveal most consumers and businesses expect Canada to enter a recession

New surveys from the Bank of Canada show 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 per cent target, the central bank is monitoring how inflation expectations develop, over fears that elevated expectations could feed into even higher prices and wages.The consumer survey showed inflation expectations for one to two years ahead have gone up since the last survey, as consumers anticipate supply chain disruptions to persist and oil prices to remain high.

The business outlook survey showed business expectations for inflation over the short-term have eased, but remain above the Bank of Canada’s target.In the long run, businesses expect inflation to return closer to the bank’s two per cent target.

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globeandmail /  🏆 5. in CA

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