Inflation And Rising Costs Archives

Consumer confidence teeters, raising CUSMA stakes

September 24, 2025/in BizNews This Week, Business And Economic Strength, Chamber Awareness, Inflation And Rising Costs/by Jim Zeeben

There’s a growing sense that Canada’s economy will dodge the recession that many feared when US tariffs were announced. Economists are now saying recovery is already underway with opportunities for accelerated growth in 2026.

Statistics Canada will release the latest GDP numbers on Friday.

Regardless, many businesses are still feeling fragile due to the uncertainty of future trade agreements and a tightening labour market. The Canadian Chamber’s Business Data Lab reports that, after five consecutive declines, overall business confidence steadied this quarter.

“Businesses are showing remarkable resilience in the face of policy uncertainty, tariff threats and a softening labour market,” Business Lab VP Patrick Gill said. “With CUSMA review approaching, the stakes for Canadian competitiveness are high.”

The lab found that challenges finding labour remain acute in construction, hospitality and agriculture. Meanwhile, sluggish consumer demand is the biggest barrier to growth according to business data, outpacing labour and financing challenges.

Provincial deficit looms as Premier seeks fed funding

September 17, 2025/in BizNews This Week, Business And Economic Strength, Government Provincial, Inflation And Rising Costs, New And Established Businesses, Safe Communities, Streamlined Regional Regulations/by Jim Zeeben

A day after admitting the provincial books are deeper in the red than initially forecast, BC’s Premier is in Ottawa seeking more cash from the federal government.

On Tuesday, BC Finance Minister Brenda Bailey updated the budget forecast to show a deficit of $11.6 billion for 2025. That’s $665 million more than expected. The deficit is forecast to rise to $12.6 billion next year and $12.3 billion in 2027-28.

The Chamber is calling on all levels of government to focus on needs and set aside wants until our financial circumstances improve.

“I’m hearing from our business community that times are tight and they are doing everything they can to streamline and live within their means,” Chamber CEO John Wilson said. “They expect governments to do the same with the taxes they collect from all of us.”

The province has committed to cutting back its spending, noting it was able to find $300 million in savings this year.

Premier David Eby said he’s pushing for more major infrastructure projects in BC, as well as urgent action to address public safety.

The Chamber applauds these steps, while acknowledging that patience has worn thin among the business community facing a crisis from public disorder and the crushing burden of red tape and taxes.

“I’ll keep saying it as long as I need to. Enough is enough,” Wilson said. “We’ve heard enough announcements without seeing adequate results. That needs to change.”

Borrowing costs drop as Bank of Canada cuts rate

September 17, 2025/in BizNews This Week, Global Uncertainty, Inflation And Rising Costs/by Jim Zeeben

As expected, the Bank of Canada lowered its policy interest rate by 25 basis points, bringing it to 2.5%.

The news follows yesterday’s report from Statistics Canada showing inflation remains stable, coming in at 1.9% in August.

The Conference Board of Canada said a weakening economy makes the cuts appropriate, especially as we have so far avoided the rising costs that many feared would result from US tariff announcements.

“Up to now, inflationary concerns about the trade dispute with the US have largely been evaded,” the Conference Board said. “Looking ahead, we’re cautiously optimistic that this trend will continue, and that inflation will continue to moderate. On Sept. 1, the federal government removed retaliatory tariffs on $44 billion worth of goods which have been in place since March. The removal of these tariffs will take away some upward price pressure and has instilled further confidence in the Bank’s decision to cut its key policy rate today.”

Inflation holds steady despite ongoing tradewar risks

August 20, 2025/in BizNews This Week, Global Uncertainty, Inflation And Rising Costs/by Jim Zeeben

So far, so good.

The latest numbers from Statistics Canada show inflation remains well within target range, raising the possibility of a further interest rate cut next month.

“This is a positive inflation report on many fronts as price pressures ease for goods and services,” Canadian Chamber principal economist Andrew DiCapua said. “Sticky core measures in July may put progress at risk, but if this momentum continues, we could see the Bank of Canada move rates lower in September. Time will tell if tariffs are feeding through consumer prices, but there are some upward trends on food and durable goods products that could tilt the scales as the effects of tariffs are realized.”

The Consumer Price Index rose 1.7% on a year-over-year basis in July, down from a 1.9% increase in June.

“Prices for gasoline led the slowdown, falling 16.1% year over year in July, following a 13.4% decline in June,” Statistics Canada’s report said. “Excluding gasoline, inflation rose 2.5% in July, matching the increases in May and June. Moderating the deceleration in July were higher prices for groceries and a smaller year-over-year decline in natural gas prices compared with June.”

Curious how LNG could impact Greater Victoria?

August 20, 2025/in BizNews This Week, Business And Economic Strength, Chamber Awareness, Climate Change Solutions, Global Uncertainty, Housing, Indigenous Business Support And Reconciliation, Inflation And Rising Costs, New And Established Businesses, Streamlined Regional Regulations, Transportation Options/by Jim Zeeben

Natural gas has a long history as a game-changing source of energy. From the old slogan, “Now you’re cooking with gas” to recent proposals aimed at boosting BC’s economy and helping wean the world off coal, LNG has made plenty of headlines.

Chamber members have a chance to dig deeper into those stories and others when we host FortisBC President and CEO Roger Dall’Antonia. The event, sponsored by ColdStar Solutions, runs Sept. 9, from 11:30am to 1 pm, at the Hotel Grand Pacific.

Dall’Antonia will speak about the latest efforts to grow the industry, the impact investing in natural gas will have on provincial revenue and the opportunities available in Greater Victoria.

If you have questions about FortisBC and our province’s energy sector, please send them to communications@victoriachamber.ca. We’ll select those that help inform conversations about our region and get the answers at the event directly from one of the province’s foremost experts.

Reserve your seat now for the Chamber’s next Business Leaders Luncheon, and make the most of this chance to connect with top movers and shakers in our business community.

Reserve Your Seat

Sticky inflation means July interest rate cut unlikely

July 17, 2025/in BizNews This Week, Business And Economic Strength, Inflation And Rising Costs/by Jim Zeeben

The latest inflation figures have dampened the chances that Canadians will get further debt relief this summer. The Consumer Price Index was 1.9% in June, up from 1.7% in May.

“Price pressures edged higher as goods inflation picked up again. While the jump was mostly brought on by base effects from gasoline prices, underlying inflation remains stubborn,” Canadian Chamber Principal Economist Andrew DiCapua said. “Seasonal factors — particularly in vehicle sales — also helped keep inflation higher. This will weigh heavily on the Bank of Canada, especially as retaliatory tariffs begin to feed through and businesses warn of rising consumer prices. Despite recent economic data presenting a weaker outlook, our call is for a hold on the policy rate at the next Bank of Canada meeting.”

The Bank of Canada, which aims to keep inflation about 2%, will hold its next interest rate announcement on July 30.

Chamber hosting CUSMA workshop in Victoria

July 9, 2025/in BizNews This Week, Business And Economic Strength, Chamber Awareness, Inflation And Rising Costs/by Jim Zeeben

Interest rate unchanged as Bank cites uncertainty

June 4, 2025/in BizNews This Week, Inflation And Rising Costs/by Jim Zeeben

The Bank of Canada announced this morning it would stand pat on its target for the overnight rate at 2.75%. The pause was not a surprise for economists as recent GDP numbers show Canada’s economy is stronger than many expected.

“The trade conflict initiated by the United States remains the biggest headwind facing the Canadian economy,” Bank Governor Tiff Macklem said, noting that it’s too soon to see impacts of retaliatory tariffs on consumer prices. “We will continue to support economic growth while ensuring inflation remains well controlled.”

Canada’s inflation rate eased to 1.7% in April, spurred by the elimination of the consumer carbon tax. The Bank’s next rate announcement is July 30.

Uncertainty sparks rate pause by Bank of Canada

April 17, 2025/in BizNews This Week, Global Uncertainty, Inflation And Rising Costs/by Jim Zeeben

After seven straight interest-rate cuts buoyed the spirits of businesses and individuals managing debt, it seems economic uncertainty has become a double-edged sword.

The Bank of Canada announced today that its target rate will remain at 2.75%, after inflation came in at 2.3% in March.

The reasoning for the pause was to provide a buffer for the future, which, ironically, had also been cited as a reason to continue to reduce rates. Lower interest rates spur consumer and business spending — good if we’re facing a downturn — but lower rates could also cause inflation to increase, which would be bad.

“Monetary policy cannot resolve trade uncertainty or offset the impacts of a trade war,” the Bank said. “What it can and must do is maintain price stability for Canadians.”

The Bank’s Governing Council said risks to the Canadian economy include:

reduced demand for Canadian exports
lower business investment, employment and household spending
and cost increases being quickly passed on to consumers.

Businesses bear burden of loosening sick day rules

April 17, 2025/in BizNews This Week, Fair Rules, Finding And Keeping Workers, Government Provincial, Hospitality And Tourism Rescue And Recovery, Inflation And Rising Costs, Safe Communities/by Jim Zeeben

A cost to employers rooted in the pandemic is now further ingrained in law after the provincial government moved to ban the requirement for doctor’s notes when employees take sick days.

“Businesses would have liked to have had more of a say on this policy,” Chamber CEO Bruce Williams said. “It’s one thing for the public sector to make this a requirement for its employees, but to force it on the private sector overlooks a lot of concerns we hear from members.”

Organizations understand the benefit of supporting their workers, especially in Greater Victoria with one of the lowest unemployment rates in Canada. During the pandemic, employers went to great lengths to support staff who were ill as well as to keep workers safe from infection. However, legislating paid sick days is a cost that is not covered by government. This additional burden on business adds up, especially at time when many organizations are facing lower margins.

“Most Chamber members I talk to have great relationships with their staff and go out of their way to help when needed,” Williams said. “But many are rightfully concerned that this change will create confusion and could incentivize abuse of the rules and potentially force employers to provide more paid days off work.”