New surveys from the Bank of Canada show most consumers and businesses expect Canada to enter a recession.
The third-quarter business outlook and consumer expectations surveys, released Monday, showed consumers have become more pessimistic about inflation in the short run, while business expectations for inflation have eased.Sign up to receive daily headline news from the Ottawa SUN, a division of Postmedia Network Inc.By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc.
“The good news, especially for the Bank of Canada is those same firms are seeing moderation in price and wage pressures,” Guatieri said. As well, “some people think high government spending and price gouging by domestic retailers are also playing a role,” the Bank of Canada said. Meanwhile, consumer expectations for inflation five years from now have eased to near pre-pandemic levels. Still, consumers were more divided this quarter about where inflation will be in the long run.