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Canadian small businesses continue to expect record wage gains over the next year and for the first time in this economic cycle see record wage gains as well, according to a Canadian Federation of Independent Business survey published Thursday.

Firms are planning 4.3% price increases over the next year, up from the prior record of 3.9% set in October, and that measure has climbed from 1.9% in December. Expected wage increases jumped to 3.1% from 2.5%, breaking the prior record high of 2.7% in data back to 2009. Wage expectations were just 1.2% at the start of the year.

Both wage and price readings are now outside the Bank of Canada's 1% to 3% band around its 2% inflation target. Deputy Governor Paul Beaudry earlier this week reiterated that conditions for raising the 0.25% policy interest rate could be in place by April, while noting some inflation pressure is temporary.

Source: CFIB