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Further Price Pressures In CFIB Business Barometer

CANADA
  • The CFIB small business barometer showed another rolling over in confidence for both 3mths and 12mths ahead, although the 3mth remains towards the higher end of the pandemic recovery compared to the slide in separate consumer confidence measures.
  • There are plenty of inflationary implications within the details though, with 50% of responses noting a shortage of skilled labour limiting sales or production growth, an uptick in production distribution constraints and the largest cost constraints coming from fuel/energy and wage costs.
  • Against that backdrop, average price plans over the next year ticked back up to 4.4% (just off the April high of 4.5%) whilst average wage plans hit a new cycle high of 3.7%.

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