MNI BRIEF: Canada Firms' Price Plans Jump In April- CFIB
Price increases planned by Canadian firms jumped the most in several years in April according to a leading industry group's survey, running against the central bank's increasing confidence that conditions for rate cuts are emerging.
The Canadian Federation of Independent Business said its members expect average price increases of 3.2% over the next year, up from 2.7% in March, the highest since September and above the top of the Bank of Canada's inflation 1% to 3% target band.
The report disturbs what had been a steady decline from expected price gains of almost 5% two years ago. Price-setting behavior remains a key BOC concern as officials debate how much longer to keep the policy interest rate at the highest since 2001. (See: MNI INTERVIEW: BOC Rate Cuts Are Justified: Ex Adviser Ambler)
Small businesses with fewer than 100 workers account for 68% of Canada’s private-sector employment, and medium-sized companies with up to 500 employees make up another 21%. Those firms contribute about half of Canada’s GDP.