MNI BRIEF: Canadian Firms' Price Plans Lowest In 3 Yrs- CFIB

Canadian firms plan the smallest price increases in more than three years according to the country's leading small business industry group.

The Canadian Federation of Independent Business said members plan to raise prices by 2.5% on average over the next year, down from 2.8% in May and 3.2% in April. Expected wage increases of 2.5% have also moderated in recent months.

CFIB expectations data is some of the most detailed at a time when the Bank of Canada is paying more attention to corporate pricing power and wage gains.

Investor bets on another rate cut following the June 5 move faded after a report Tuesday showed inflation unexpectedly quickened to 2.9% in May from a year earlier. Governor Tiff Macklem on Monday reiterated he's increasingly confident inflation is returning to target and said data could be bumpy. (See: MNI INTERVIEW: BOC To Skip Cuts At 2 Of 4 Meets This Year- ATB's Parsons)