New surveys from the Bank of Canada show consumers have become more pessimistic about inflation in the short run, while business expectations for inflation have eased.
With inflation well above the bank’s two per cent target, the central bank is monitoring how inflation expectations develop, over fears that elevated expectations could feed into even higher prices and wages.The consumer survey showed inflation expectations for one to two years ahead have gone up since the last survey, as consumers anticipate supply chain disruptions to persist and oil prices to remain high.
The business outlook survey showed business expectations for inflation over the short-term have eased, but remain above the Bank of Canada’s target.In the long run, businesses expect inflation to return closer to the bank’s two per cent target.
The consumers are paying the price of inflation.
I call BS
Consumers are wrong right ?
How about an article on how their lying about not raising the interest rate before 2023? Who got hurt and who it helped?
Isn’t is nice that the BoC has money to waste on surveys? And bonuses and raises too!