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Canadian Small Businesses Point to Increases in Bank of Canada's Inflation Expectations, Says Scotiabank

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The Canadian Federation of Independent Business (CFIB), which is an association and lobby group for small firms, released its monthly Business Barometer survey on Thursday, said Scotiabank.

CFIB's monthly measure of inflation expectations tends to lead the Bank of Canada's quarterly business outlook survey, or BOS, and is more timely than the BoC's monthly Business Leaders' Pulse, or BLP, survey, stated Scotiabank.

The CFIB survey points to the next quarterly BOS measure of inflation expectations in July moving much higher and there is a strong correlation notwithstanding mismatched one- and two-year horizons, added the bank.

The CFIB measure tends to track beneath the BLP monthly measure, which suggests that the BLP measure of one-year-ahead inflation expectations could remain elevated with upward pressure, according to Scotiabank.

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