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.
, released Monday, showed consumers have become more pessimistic about inflation over the next one to two years, while business expectations for inflation have eased.
“The good news, especially for the Bank of Canada is those same firms are seeing moderation in price and wage pressures,” Guatieri said. To cope with high inflation, almost half of consumers report buying less and buying more items on sale. “It's not surprising that with all the focus on inflation in the media, and some fairly high price increases staring them in the face right now, they expect that high inflation will continue,” he said in an interview.