Wage inflation has hit a new high with a 5.4% increase year over year. The markets expect costs to remain elevated at 4.5-5.5% over the next 12 months. While long term inflation expectations (5 years forward) have remained stable in the 2-3% range, the gap between short term and long term is narrowing.
Where are we now?
Where do we go from here?
What does this mean for Canadian business?
SOURCES
https://www.bankofcanada.ca/rates/indicators/capacity-and-inflation-pressures/
https://www150.statcan.gc.ca/n1/daily-quotidien/220909/dq220909a-eng.htm
https://fred.stlouisfed.org/series/MICH
https://www.mql5.com/en/economic-calendar/united-states/michigan-5-year-inflation-expectations
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