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 plan their smallest price increases in two years, according to a survey by one of the country's biggest industry groups, in another sign the central bank may not need to raise interest rates again next month.
The Canadian Federation of Independent Business said Thursday that expectations for price gains over the next year slipped 0.4 percentage point to 3.3%. 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 2.9% over the next year, down from the prior month's pace of 3.2% and the lowest since February of last year. Those gains peaked at 3.6% in June 2022.
The Bank of Canada unexpectedly raised its overnight borrowing rate earlier this month to the highest since 2001 at 4.75%, and officials listed a host of upside risks that could leave inflation stuck above its 2% target. Investors had already scaled back bets for a hike at the July 12 meeting after Statistics Canada reported Tuesday that CPI slowed a full percentage point to 3.4%, though core rates faded only half as much.
SLOWING PRICE RISES
"Future price increases are on a quick downwards trend" according to the report by CFIB, which has 97,000 members and whose monthly survey sample of more than 500 is much larger than a central bank survey of companies due out Friday. The Bank of Canada's last quarterly polling released April 3 showed about four in five managers saw inflation topping 3% over the next two years.
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. (See: MNI INTERVIEW: Firms See Canada Skirting Slump & More BOC Pain)
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.