Inflation And Rising Costs Archives

Plan for prompt payment rules supports construction

October 8, 2025/in BizNews This Week, Business And Economic Strength, Fair Rules, Finding And Keeping Workers, Government Local, Government Provincial, Housing, Inflation And Rising Costs, Streamlined Regional Regulations, Training And Microcredentials/by Jim Zeeben

The Chamber applauds a new agreement that will let builders build, and spend less time chasing wayward payments.

On Tuesday, the province announced legislation that will help contractors, subcontractors and workers get paid on time.

“We welcome this critical step toward payment certainty for B.C.’s construction industry,” BC Construction Association president Chris Atchison said. “It marks a new starting line that requires sustained collaboration between industry and government. Establishing fairness in how money flows means the industry can focus on building, not battling over payment. BCCA remains committed to continuing to work with the provincial government on this important issue.”

With housing supply a critical component for improving the cost of living in Greater Victoria and across BC, governments need to address all barriers facing contractors.

The prompt-payment legislation, once passed, will:

· set clear timelines for payment on construction projects

· establish a fast-track adjudication process to resolve payment-related disputes

· improve cash flow and stability across the construction industry.

Ontario and Alberta already have prompt-payment laws, and industry groups in BC have supported bringing those rules here. The province said there will be a transition period to establish an adjudication authority and conduct outreach and education regarding rights and responsibilities under the new system.

Prompt-payment rules will apply broadly to both private- and public-sector projects in BC, including government contracts, unless specific exemptions are set out by regulation.

Chamber’s new advocacy focused on urgent action

October 8, 2025/in BizNews This Week, Chamber Awareness, Chamber News, Fair Rules, Finding And Keeping Workers, Government Federal, Government Local, Government Provincial, Inflation And Rising Costs, New And Established Businesses, Safe Communities, Streamlined Regional Regulations/by Jim Zeeben

You might have noticed some changes to how The Chamber is using our position as the unapologetic Voice of Business.

The series of messages, shown below, will start appearing more on Chamber social channels and in other media. The focus is on action. Businesses have had too many years of uncertainty caused by societal shifts and the growing burden of red tape. Our members and our Board of Directors have been clear that we need to speak up and call for change.

Our first focus is downtown Victoria and other central areas being devastated by a permissive attitude toward disorder and crime. People need to feel safe. That means all levels of government need to do their part — and do it with urgency.

We know what’s needed: consistent police and bylaw presence and enforcement, immediate options for people needing mental health and addiction care and changes to a legal system that currently allows repeat offenders to harm our communities.

Our other current priorities are more responsible spending by governments, and reduction in regulatory roadblocks that make building homes and providing services for families too expensive.

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.