In its business outlook survey released Monday, the central bank said businesses’ expectations for near-term inflation have increased, and firms expect inflation to be high for longer than they did in the previous survey.
The report also said businesses expect sales growth will begin to slow and return to normal following the rapid recovery from the pandemic.Article contenttap here to see other videos from our teamLabour shortages and supply chain bottlenecks continue to be key issues with supply chain problems taking longer to resolve than previously anticipated, according to the report.
Meanwhile, the bank’s Canadian survey of consumer expectations suggests consumers’ expectations for inflation have also risen with worries about prices for food, gas and rent. “Some consumers mentioned sticking to a strict budget for groceries by buying more generic products or not buying items deemed less necessary. Some are relying more on gardening for food or using cheaper forms of commuting, like biking,” the report said.