Businesses seek certainty as inflation plateaus

Inflation watchers breathed a sigh of relief Wednesday morning as the latest report on Canada’s Consumer Price Index shows the rate appears to have stalled out at 6.9%. While the number is still more than double the Bank of Canada’s target rate, the fact it no longer seems to be increasing is reason for optimism. High inflation creates uncertainty for businesses facing difficult decisions around how they will increase prices and raise wages.

Inflation jumped to 8.1% in June — the highest it had been in decades — prompting the Bank of Canada to raise its interest rate target six times in an attempt to slow the economy.