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BOS Inflation and Wage Expectations Summary

CANADA DATA

Some progress in inflation expectations but as the BoC summarises: “Firms expect inflation in the short term to remain elevated”

* 2Y 3.7% from 3.9% in Q1 for lowest since 3Q21

* BLP 1Y 3.8% from 3.9% in May and 4.1% at the time of the last survey

* BLP 2Y 2.8% from 3.0% in May and 2.9% at the last survey. Just with the BoC's 1-3% target range.

* BLP 5Y 2.5% from 2.6% in May and 2.6% at the last survey

(BLP = Business Leader’s Pulse for a higher frequency measure)

* Wage expectations over next year: 4.48% from 4.67 in Q1 and 4.66 in Q4, lowest since 3Q21 vs high of 5.84 2Q22.
* Survey taken May 8-25 before the BOC hiked 25bp on Jun 7.



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