Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
Canadian firms boosted wage and price expectations this month according to a survey Thursday from one of the country's biggest industry groups, countering optimism in the last CPI report and the central bank's view inflation will slide in the first half of this year.
The Canadian Federation of Independent Business said firms' expectations for price gains over the next year climbed 0.2 percentage points to 3.7%. Those views have topped the Bank of Canada's 1%-3% target band since April 2021, and peaked early last year at 4.9%.
Wages are seen climbing 3.3% over the next year, up from the prior month's pace of 3.0% and bringing it closer to the record 3.6% set in June.
Bank of Canada officials say they are likely done after raising rates by 4.25 percentage points over the last year, but are more sensitive to upside risks with inflation so far from the 2% target. (See: MNI INTERVIEW: BOC Too Optimistic On CPI Slowdown: Ex Official)
"Borrowing costs and product input costs are the top cost constraints seeing current levels of concern at about twice the historical average value," the CFIB report said.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.