“While keeping inflation at reasonable levels is definitely an important policy goal, the rate increase comes at a time when 62% of small businesses are still saddled with pandemic debt, for an average of $158,000,” said Simon Gaudreault, Chief Economist and Vice-President of Research at CFIB.
“Doing business in Canada is becoming too costly. Rising costs, compounded with interest rate hikes and difficulties finding staff, are putting business owners in a tough spot.”
Based on the CFIB’s August Business Barometer data, 32% of companies intend to raise their prices by 6% or more over the course of the following year, though this percentage appears to have peaked recently (previously 39% in June).
A survey of CFIB members conducted in June revealed nearly eight out of ten (79%) small business owners have increased their prices above average in the previous year to offset rising costs.
Another 81% of small business owners feel the federal government is unaware of the financial pressures they are under.
