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 have never been so worried about wage demands with a record 65.3% of managers calling them an obstacle, a trend which could rattle a central bank that recently told executives not to build elevated inflation into long-term labor contracts.
The share of firms calling wages a problem climbed for five straight months through August from a recent low of 58.7% according to the Canadian Federation of Independent Business survey published Thursday. While wages have often been a big concern in CFIB tracking, the latest reading is the highest in figures back to 2009 and suggests urgency in tightening monetary policy.
For a central bank worried about entrenched inflation and a potential wage-price spiral, the survey shows the wage figure almost as high as the 71.8% of firms who see trouble with energy costs. BOC Governor Tiff Macklem told a CFIB event last month "as a business, don't plan on the current rate of inflation staying. Don't build that into longer term contracts." Another government labor market adviser says while a wage-price spiral is unlikely, higher rates put the economy at risk of recession. (See: Canada Faces Recession, Not Wage Spiral-Adviser)
Source: CFIB
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.