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BOC Surveys Show Elevated Price Gains But Some Improvement

BOC
  • Business inflation expectations see progress at 40% seeing inflation above 3% over the next two years, down from 54% last quarter and the lowest since Q2 2021. 
  • Consumer inflation expectations for the year ahead is almost unchanged from the last quarter at +4.9%. 
  • Wage growth expectations are a survey high of +2.8% despite other indicators such as length of job search increasing and probability of job loss stabilizing.
  • Businesses expect a slowdown in wage growth, but still plan for +4.1% increases which is elevated compared to the historic average.
  • Corporate pricing behavior is normalizing as the Bank says the share of firms expecting high costs have "declined markedly" from the peak in 2022. 

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