In the agency’s latest survey of Canadian business conditions, 58.4 per cent of respondents expected inflation to pose their biggest obstacle over the next three months, a sentiment felt most acutely in retail trade (74.6 per cent), accommodation and food (71.3 per cent) and energy (62.9 per cent). With inflation still running high, almost a third of businesses (32.4 per cent) expect to raise prices over the next three months. (The Logic)
Talking point: The survey results underscore inflation’s outsized effects on businesses, even as prices come down from their summer highs. Canadian consumer prices rose 6.9 per cent in October, down from a high of 8.1 per cent in June (The second-most common obstacle among respondents after inflation was rising input costs). Still, supply-chain constraints showed signs of easing, with just 23.5 per cent of respondents expecting difficulty in acquiring goods, down from 26.8 per cent in the third quarter. Nearly three-quarters of businesses did not intend to apply for debt financing amid higher interest rates. The Canadian Survey on Business Conditions, which asked 17,363 businesses about their expectations over the next three months, was conducted between Oct. 3 and Nov. 7.