MNI BRIEF: Canadians See Prices Holding Sticky As BOC Mulls Second Rate Cut

MNI (OTTAWA) - Canadians believe prices will remain sticky, according to Angus Reid and TransUnion polling released Tuesday, in results coming ahead of the central bank's own consumer surveys next Monday and as officials identify price expectations as a factor in whether they cut interest rates for a second time later this month.

The poll by the TransUnion credit services company showed 86% of respondents said inflation for "everyday goods" like groceries and gas is their biggest financial concern over the next six months, up from 81% in the previous quarterly survey and the highest in two years. The results were gathered in early May, by which time the headline inflation rate slowed to less than 3%. Concern about housing prices came in second at 59%, rising from 40% over the last two years, while fear of a recession has slipped 10pp to 39% over the last two quarters. 

"Asked about their perceptions of prices for a basket of goods similar to those that comprise to Consumer Price Index, there are almost no products where Canadians are seeing relief," the Angus Reid poll said. The cost of living led the list of top issues, with 60% identifying that topic, and another 33% identifying housing costs. (See: MNI INTERVIEW: BOC Free To Cut At Next Four Meets- Brett House)