Bank of Canada deputy governor Nicolas Vincent reveals that businesses are presently more inclined to increase their prices and in larger amounts compared to the pre-pandemic period. This ongoing trend is a major contributor to the unexpected rise in inflation rates.
Vincent shared these observations during his inaugural speech as deputy governor at the Chamber of Commerce of Metropolitan Montreal. According to his prepared remarks, the Bank of Canada has recognized a strong connection between higher-than-anticipated inflation over the past year and the more frequent and substantial price hikes by businesses.
While Vincent acknowledges that pricing behavior by firms has improved gradually since the start of the year, progress has been slow. Recent research by the central bank indicates that price increases have closely aligned with the cost increments faced by businesses. However, Vincent emphasizes that even with stable profit margins, customers are still bearing the entire burden of higher prices.
Vincent points out that these findings about the impact of pricing behavior on inflation have led the Bank of Canada to question the relationship between inflation and its drivers.
© 2023 The Canadian Press
Denial of responsibility! Vigour Times is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
