Canadian businesses and consumers believe that the current era of high inflation will last longer than previously expected, according to two surveys by the Bank of Canada released on Monday.
Two reports ( Business Outlook and Canadian Consumer Expectations) show that the central bank is targeting Canadian businesses and consumers quarterly on what's happening in the field. This is the result of investigating the outlook. In the Canadian economy.
The findings differed in several respects, but the main themes of both were inflation and its impact on buying, selling, employment and dismissal.
The main point of the corporate survey was that most companies are seeing higher sales than they saw in the early days of the pandemic because economic activity has returned to some normal state. However, demand continues to outpace supply for almost all types of companies, which is and is part of the cause of high inflation that is currently plagued by the economy.
Almost two-thirds of companies said they had a labor shortage at their central banks. Almost half (43%) say they have bottlenecks in their supply chain and are taking longer to resolve than previously expected.
Companies expect Canada's inflation rate to rise above 5% in the next year and above 4% in the next two years. However, according to a survey five years from now, inflation is expected to return to the central bank's target range of 1-3%.
It was a similar story on the consumer side. Long-term inflation expectations increased from 3.2% to 4%, and short-term inflation expectations increased to 6.8%, up from 5.1% in the previous quarter.
"Consumers have clearly noted the recent release of the [Consumer Price Index] and the highs of food and petrol." CIBC Economist Andrew Grantham and Karyne Charbonneau Described the data. “There is increasing uncertainty about the development of inflation.”
Wages are expected to rise
On average, employers are paying for labor this year. Is expected to increase by 5.8%.
This is significantly higher than the 2% wage increase that consumers expect from banks .
"Workers do not expect rising wages to catch up with inflation," the bank said, and private-sector people believe that this year's wages will be higher than public-sector wages. He added that he was.
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