Canadian businesses and consumers think the current era of high inflation will persist for longer than they'd previously hoped, according to two surveys from the Bank of Canada released Monday. But demand continues to outstrip supply across almost all types of businesses, which is both a factor of and a contributor to the high inflation currently plaguing the economy. Long-term inflation expectations increased from 3.2 per cent to four per cent, while short-term expectations increased to 6.8 per cent, up from 5.1 per cent last quarter. That's significantly higher than the two per cent wage increases that consumers told the bank they were expecting. Economist Leslie Preston with TD Bank said the survey shows just how concerning inflation is in the minds of ordinary consumers.

Source: CBC News July 04, 2022 18:00 UTC