FREELAND: CANADA WON'T ESCALATE OR BACK DOWN ON US TRADE FIGHT

MNI: PBOC To Aim To Drive Inflation Higher- Advisors

MNI: China To Issue More Bonds As Stimulus Targets Consumption

MNI: PBOC To Aim To Drive Inflation Higher- Advisors

MNI: China To Issue More Bonds As Stimulus Targets Consumption

MNI BRIEF: China Nov M1 Decline Narrows, M2 Slows

EZ/UK T-Bill Calendar: 8/13/28/50-Week BTF Auction on Monday

EZ/UK Bond Supply Calendar: 4.125% Jul-29 Gilt Due on Tuesday

MNI: CANADA OCT WHOLESALE SALES +3.3%; EX-AUTOS +0.5%

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Business and Consumer Inflation Expectations Slowest Since 2021

BOC
Homepagemarkets-real-timeBulletMarketsFixed Income BulletsForeign Exchange Bullets
  • Business inflation expectations have eased with only 15% of executives expecting it above 3% over the next two years. That's a big drop from the 41% seen last quarter and the lowest since Q1 2021.  
  • BoC business survey also showed 62% expected inflation to be at the 2%-3% range, up from 48% in the previous quarter.
  • For all time horizons, firms' inflation expectations have moderated, converging at about 2.5%. 
  • Businesses indicated labor shortages were less intense from a year ago amid weaker sales and increased labor supply. Most firms expected wage growth to slow in the next 12 months while hiring intentions were weaker than average.
  • Consumer inflation expectations for the year ahead have broadly eased but remain elevated.
  • Report is in line with BOC view officials can keep cutting interest rates as inflation stabilizes. 
135 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
  • Business inflation expectations have eased with only 15% of executives expecting it above 3% over the next two years. That's a big drop from the 41% seen last quarter and the lowest since Q1 2021.  
  • BoC business survey also showed 62% expected inflation to be at the 2%-3% range, up from 48% in the previous quarter.
  • For all time horizons, firms' inflation expectations have moderated, converging at about 2.5%. 
  • Businesses indicated labor shortages were less intense from a year ago amid weaker sales and increased labor supply. Most firms expected wage growth to slow in the next 12 months while hiring intentions were weaker than average.
  • Consumer inflation expectations for the year ahead have broadly eased but remain elevated.
  • Report is in line with BOC view officials can keep cutting interest rates as inflation stabilizes.