Quebec nurse had to clean up after husband's death in Montreal hospital
On a night she should have been mourning, a nurse from Quebec's Laurentians region says she was forced to clean up her husband after he died at a hospital in Montreal.
A pair of new reports from the Bank of Canada point to rising inflation expectations by Canadian businesses and consumers.
In its business outlook survey released Monday, the central bank said businesses' expectations for near-term inflation have increased, and firms expect inflation to be high for longer than they did in the previous survey.
"Many firms continue to report plans for raising wages to attract and retain workers," the bank said in its report which suggested businesses expect wages and prices to grow at a faster pace.
"In addition, a growing number of businesses mentioned the rising cost of living as an important source of wage growth. Nearly half of firms anticipate their wage increase will remain above pre-pandemic levels beyond the next 12 months."
Economists at CIBC said the surveys of businesses and consumers suggest continued supply shortages, high inflationary pressures and a rise in households' longer-term inflation expectations that will keep the Bank of Canada on track to raise interest rates by three-quarters of a percentage point at its next meeting.
"Businesses suggested that higher prices and interest rates may potentially affect the viability of their investment plans, but that was not occurring yet," CIBC's Andrew Grantham and Karyne Charbonneau wrote in report.
The business outlook survey also said businesses expect sales growth will begin to slow and return to normal following the rapid recovery from the pandemic.
Labour shortages and supply chain bottlenecks continue to be key issues with supply chain problems taking longer to resolve than previously anticipated, according to the report.
In response, the business outlook survey said businesses are reconfiguring supply chains and holding more inventory than usual as well a majority of firms are planning to invest and hire more.
However, the Bank of Canada said longer-term expectations for inflation by businesses remain stable between two and three per cent.
The report also noted that capital expenditures in the energy sector will grow but are expected to fall short of past highs with investments in new projects less robust than it was in previous commodity price booms.
"After many years of financial stress, most producers are using the current revenue windfall to improve their balance sheets, reduce their debt and pay dividends to shareholders," the report said.
Meanwhile, the bank's Canadian survey of consumer expectations suggests consumers' expectations for inflation have also risen with worries about prices for food, gas and rent.
The consumer report also said expectations for higher inflation and rising interest rates are affecting consumer confidence.
The bank noted that lower-income Canadians and older individuals are more concerned about grocery prices and rent than younger respondents and households with higher incomes.
Consumers, especially those with lower incomes, are adjusting to high inflation by cutting spending, postponing major purchases, looking for discounts and options for cheaper alternatives, it said.
"Some consumers mentioned sticking to a strict budget for groceries by buying more generic products or not buying items deemed less necessary. Some are relying more on gardening for food or using cheaper forms of commuting, like biking," the report said.
However, the report also found that most respondents think the Bank of Canada has the credibility and tools to bring inflation back under control and their belief in the bank's ability to achieve its inflation target has not changed materially since before the pandemic.
Statistics Canada reported last month that the annual pace of inflation for May rose to 7.7 per cent, its highest level since 1983.
The Bank of Canada has been raising its key interest rate target in an effort to bring inflation back to its target of two per cent.
The central bank has raised rates three times this year so far to bring its key policy rate to 1.5 per cent. Its next interest rate decision is set for July 13 and many private sector economists expect the Bank of Canada to raise its key rate by three-quarters of a percentage point.
RBC assistant chief economist Nathan Janzen said the Bank of Canada is concerned that longer-run inflation expectations could come unhinged, making it more difficult to bring inflation back to target.
"To prevent that outcome, moving rates higher from still-low levels currently is an easy call to make and we expect today's survey only further raises the odds that the central bank will follow the U.S. Fed with at least a 75 basis point hike in July," Janzen wrote in a report.
This report by The Canadian Press was first published July 4, 2022.
On a night she should have been mourning, a nurse from Quebec's Laurentians region says she was forced to clean up her husband after he died at a hospital in Montreal.
A North Bay, Ont., lawyer who abandoned 15 clients – many of them child protection cases – has lost his licence to practise law.
Members of the Bank of Canada's governing council were split on how long the central bank should wait before it starts cutting interest rates when they met earlier this month.
Brad Marchand scored twice, including the winner in the third period, and added an assist as the Boston Bruins downed the Toronto Maple Leafs 4-2 to take a 2-1 lead in their first-round playoff series Wednesday
Cuba's foreign affairs minister has apologized to a Montreal-area family after they were sent the wrong body following the death of a loved one.
Mounties in Nanaimo, B.C., say two late-night revellers are lucky their allegedly drunken antics weren't reported to police after security cameras captured the men trying to steal a heavy sign from a downtown business.
The federal government's proposed change to capital gains taxation is expected to increase taxes on investments and mainly affect wealthy Canadians and businesses. Here's what you need to know about the move.
Canada's Deputy Prime Minister Chrystia Freeland was among the 1,700 delegates attending the two-day First Nations Major Projects Coalition (FNMPC) conference that concluded Tuesday in Toronto.
The daughter of a New Brunswick man recently exonerated from murder, is remembering her father as somebody who, despite a wrongful conviction, never became bitter or angry.
A property tax bill is perplexing a small townhouse community in Fergus, Ont.
When identical twin sisters Kim and Michelle Krezonoski were invited to compete against some of the world’s most elite female runners at last week’s Boston Marathon, they were in disbelief.
The giant stone statues guarding the Lions Gate Bridge have been dressed in custom Vancouver Canucks jerseys as the NHL playoffs get underway.
A local Oilers fan is hoping to see his team cut through the postseason, so he can cut his hair.
A family from Laval, Que. is looking for answers... and their father's body. He died on vacation in Cuba and authorities sent someone else's body back to Canada.
A former educational assistant is calling attention to the rising violence in Alberta's classrooms.
The federal government says its plan to increase taxes on capital gains is aimed at wealthy Canadians to achieve “tax fairness.”
At 6'8" and 350 pounds, there is nothing typical about UBC offensive lineman Giovanni Manu, who was born in Tonga and went to high school in Pitt Meadows.
Kevin the cat has been reunited with his family after enduring a harrowing three-day ordeal while lost at Toronto Pearson International Airport earlier this week.