BoC survey also reveals sentiment on economy, jobs
The cost of living will stretch household budgets further as wages fail to keep up with inflation according to a survey of Canadian consumers.
The Bank of Canada has released the results of its fourth-quarter survey of consumer sentiment including real estate prices and household finances.
It shows that there has been a slight dip in expectations for inflation over 1 year while the 2-year outlook remains largely unchanged from the previous quarter.
But while growth in household income remained stable, spending expectation was higher and continues to outpace expected wage growth. Consumers expect inflation to rise by 2.2% with wages up 2%.
This suggests that households may be forced to tap their savings or increase debt to make ends meet.
House price expectations continue to show growth nationwide and this sentiment is particularly strong in British Columbia while remaining weak in Alberta and Saskatchewan.
The labour market section of the survey remains positive with a larger expected reduction in voluntary work suggesting more people believe they will find a better job in 2020.
But there was also a higher level of concern about losing a job, although the expectation that finding a new job remained positive.
The survey was conducted in November 2019.
The BoC also released the results of its Business Sentiment Survey this week which revealed increased sentiment despite concerns about global trade.
Our Canadian Survey of Consumer Expectations asks households for their views on inflation, the labour market and personal finances. We published results for the first time today. #cdnecon #economy https://t.co/ZdmqB0U8BT
— Bank of Canada (@bankofcanada) January 13, 2020
