Bank of Canada deputy governor Nicolas Vincent says businesses raising their prices more frequently than they did before the pandemic is contributing to higher-than-expected inflation.
Vincent made the comments Tuesday in his first speech as external non-executive deputy governor, a newly created role, to the Chamber of Commerce of Metropolitan Montreal.
In prepared remarks for his speech, which was delivered primarily in French, Vincent said price increases have been larger than normal and more frequent than before the pandemic — a trend that has persisted.
“We believe that this behaviour by firms — both here and abroad — is intimately linked to the stronger-than-expected inflation we’ve seen,” Vincent said.
The annual inflation rate fell to 2.8 per cent in June, but rebounded to four per cent in August as economists expect a long road ahead to reaching the central bank’s target…