Many Metro Vancouver businesses will look to hike their prices in the next three months.
If you were hoping inflation would give your wallet a break, the results of a recent survey conducted by the Canadian Survey on Business Conditions Report examined by the Greater Vancouver Board of Trade (GVBOT) say that over one-third of Metro Vancouver businesses surveyed will be looking to raise prices thanks to rising interest rates.
The president and CEO of the GVBOT says these businesses will likely have no choice but to pass their higher costs onto consumers.
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A total of 729 employers across Metro Vancouver were surveyed between January and February 2023.
Regarding how these businesses and employers expect consumers to be impacted, 35% say they anticipate raising prices over the next three months. 34% also expect to be less profitable.
The GVBOT also examined the businesses’ expected obstacles over the next three months.
60% of respondents said rising inflation was a key concern, 47% said it was the rising cost of inputs, and 40% said rising costs in real estate or property taxes.
In a statement, Bridgitte Anderson said that the landscape is becoming increasingly difficult for businesses in Metro Vancouver.
“Higher interest rates are putting upward pressure on the cost of inputs, borrowing, and virtually every expense associated with owning and operating a business. With no relief in the recent provincial budget and a 10.7% property tax increase in Vancouver, many business owners will have no choice but to pass these costs along to consumers in the form of higher prices,” she said.
“All of these cost increases are making it more challenging for businesses to implement new technologies or make long-term investments. As operating expenses go up and profitability expectations go down, business owners are certainly feeling the squeeze.”
Anderson also commented on the challenges of attracting new employees.
“Employers are increasing wages for new hires, paying existing employees more, and offering different kinds of training and benefits incentives to recruit and retain talent. Attracting employees with the technical skills to help their business thrive continues to be a huge challenge for business owners.”
āHigher interest rates are putting upward pressure on the cost of inputs, borrowing, and virtually every expense associated with owning and operating a business.”
Read the latest Canadian Survey on Business Conditions for Metro Vancouver: https://t.co/G9hddCOxAJ pic.twitter.com/L4wsEU9L5Y
ā Greater Vancouver Board of Trade (@BoardofTrade) March 29, 2023