Bank of Canada's Q2 Consumer Survey Finds Higher Inflation Expectations Weigh on Spending
Canadian consumer inflation expectations edged higher in the second quarter, with more expecting inflation above 3% and increases in both two and five-year expectations, said the Bank of Canada said in its Canadian Survey of Consumer Expectations (CSCE) released on Monday. US tariffs remained the main driver, but concerns over energy prices rose sharply, the central bank noted. Elevated prices and economic uncertainty continued to weigh on spending plans, as households expecting Middle East tensions to raise inflation were more likely to cut discretionary spending, switch to lower-cost essentials, and reduce driving, found the BoC's survey.
Canadian consumer inflation expectations edged higher in the second quarter, with more expecting inflation above 3% and increases in both two and five-year expectations, said the Bank of Canada said in its Canadian Survey of Consumer Expectations (CSCE) released on Monday.
US tariffs remained the main driver, but concerns over energy prices rose sharply, the central bank noted.
Elevated prices and economic uncertainty continued to weigh on spending plans, as households expecting Middle East tensions to raise inflation were more likely to cut discretionary spending, switch to lower-cost essentials, and reduce driving, found the BoC's survey.