Frequent price increases by businesses contributing to sticky inflation: BoC official
Bank of Canada deputy governor Nicolas Vincent says businesses are still raising their prices more frequently and by larger amounts than they did before the pandemic, which is contributing to higher-than-expected inflation.
Vincent made the comments in his first speech as deputy governor today to the Chamber of Commerce of Metropolitan Montreal.
According to his prepared remarks, Vincent says the Bank of Canada believes that higher-than-expected inflation over the last year is "intimately linked" to larger and more frequent price increases from businesses.
Although he notes pricing behaviour by firms has been shifting closer to normal since the beginning of the year, that progress has been slow.
Recent research from the central bank shows price increases have mirrored the cost increases businesses have faced, but Vincent notes that even stable profit margins would mean customers are carrying the entire burden of higher prices.
Vincent says these recent discoveries about the effect pricing behaviour may be having on inflation is leading the Bank of Canada to question the relationship between inflation and its drivers.
This report by The Canadian Press was first published Oct. 3, 2023.
YOUR FINANCES

Here's how much more your Christmas dinner will cost this year
Celebrating with your family this December could come with increased expenses as data shows many traditional holiday foods are going up in price.

Canadians increasingly turning to charities to meet essential needs, but cost of living also hitting donations
Every Giving Tuesday, many Canadians generously dig into their wallets to donate to charities, but as the cost of living climbs, research suggests many Canadians are also in need of help.

Here's how much more it's expected to cost to feed a family of 4 in Canada next year
A new report by more than 30 researchers is estimating how much food will cost in 2024 and how much money it will take to feed families.
What is the grocery code of conduct, and will it help to lower the cost of food?
Canada's grocery code of conduct is in the final stages with advocates saying it would help lower food prices while big grocers say it won't.
Poor Inuit housing 'direct result of colonialism': federal housing advocate
A federal housing advocate is accusing every level of government in Canada of failing to uphold the Inuit's right to housing -- and therefore denying their human rights.
Having financial problems? Don't get caught in debt relief scams
With inflation, rising interest rates, and higher costs for gas, groceries and housing, many Canadians are feeling the financial pinch and now personal bankruptcies are on the rise.
Do you tip at a restaurant like Chipotle? Here’s what a survey found
But the majority of Americans say they tip 15 per cent or less for a typical meal at a sit-down restaurant, according to a wide-ranging new poll on tipping attitudes from Pew Research Center. The poll surveyed nearly 12,000 people.
Loblaw raises the affordability alarm as grocery code of conduct nears completion
As the grocery code of conduct nears completion, the Canadian industry's biggest player is raising concerns the guidelines could add fuel to the food inflation fire.
CTVNews.ca Top Stories

1 in 9 Canadian adults have had long-term symptoms from COVID infection: StatCan
Statistics Canada says about one in nine Canadian adults have had long-term symptoms from COVID-19 infection.
More wintry weather is on its way to Canada, with a big storm system closing in
Canadians should expect snow, freezing rain and more winter conditions this weekend as storms travel across the country.
'Pseudoscience': Alberta's health minister under fire for naturopathic medicine meeting
Alberta's health minister is facing pushback after taking a meeting focused on naturopathic medicine's role in the province's primary care.
Canada is deporting more people faster, drawing concern from migrant advocates
Advocates are sounding the alarm on the rise in deportations in Canada and are calling on the federal government to follow through on its 2021 promise to expand a regularization program for undocumented people living in the country.
Two charged with murder of Quebecer Daniel Langlois and partner in Dominica
The director of public prosecutions in the Caribbean nation of Dominica has confirmed that two men have been charged in the death of Quebecer Daniel Langlois and his partner.
Time's up for some short-term rentals in B.C., as new housing rules transform scene
Short-term rental managers across B.C. are lamenting the demise of their business model, while real estate agents say owners of investment properties are being forced to sell at a loss or risk being unable to pay their mortgage.
More caffeinated energy drinks pulled from shelves: Here's what was recalled in Canada this week
Here's a list of items Health Canada and the Canadian Food Inspection Agency recalled this week, including mushrooms, more caffeinated energy drinks, and electric cooktops.
Judge rules in favour of NBA star, nullifies purchase of $8M Burlington mansion once occupied by 'crypto king'
A judge has ruled in favour of NBA star Shai Gilgeous-Alexander in his lawsuit against a company that sold him a Burlington mansion previously occupied by self-proclaimed ‘crypto king’ Aiden Pleterski.
NFL coach apologizes for crediting 9/11 hijackers for co-ordination in Buffalo Bills team meeting years ago
An emotional Buffalo Bills coach Sean McDermott acknowledged regret on Thursday for crediting the 9/11 hijackers for their co-ordination during a team meeting four years ago.