Businesses across the Battlefords are being impacted by inflation. (File photo/battlefordsNOW Staff)

By battlefordsNOW Staff

Rising costs

Inflation impacting Battlefords businesses

May 17, 2022 | 4:17 PM

Business owners in the Battlefords have tough decisions ahead in the current economic climate.

Late last month, inflation for Canada’s Consumer Price Index hit a more than 30-year high at 6.7 per cent. That’s also well above the market’s expected number of 6.1 per cent and maintains a year-long trend of remaining above the Bank of Canada’s inflation control band.

The Canadian Chamber of Commerce’s Chief Economist, Stephen Tapp, said Canadians should expect more interest rate hikes ahead.

“It seems increasingly clear to me that even higher rates are going to be needed to ultimately bring inflation under control,” Tapp wrote in April. “That said, in the coming months headline inflation should begin to decelerate.”

Prices have increased in essentially every area of Saskatchewan life. Energy is the primary hike at 28 per cent, but transportation, food, goods, services and shelter are all up as well.

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Linda Machniak, Battlefords Chamber COO, told battlefordsNOW this is impacting all of the things people need to be mobile in their life. For business owners, it’s constant recalculation while trying to address costs and keep employees.

“It’s everywhere a small business person turns,” she said. “Fee’s, rates, changes, carbon tax, it’s all impacting their ability to do business.”

Machniak noted the Canadian Chamber had asked the federal government to consider not raising the carbon tax, given there’s already a significant amount of money coming from the increases in gas taxes because of fuel prices increasing. However, saving money will come down to taxpayers.

“It will mean people won’t travel as much, won’t go on camping trips,” Machniak said. “Ultimately that’s where our government wants us to head, to cut back on fossil fuel use.”

(File photo/battlefordsNOW Staff)

Another some will likely save money is going out to eat less, which has another negative effect on business owners.

“It’s going to hit the same industry that was hit the hardest during the pandemic,” Machniak said. “It could be a bumpy road ahead for a while.”

She noted that there’s a dichotomy in Saskatchewan for businesses, with corporations like Cameco and Nutrien doing very well. Seeing increases in potash, uranium, and other products that countries are seeking an alternative producer to Russia has led to some long-term optimism. However, that growth depends on small businesses surviving and workers staying.

“There’s a belief in the province that we could be a leader in development for decades,” Machniak said.

“On the other hand, if we don’t have people to work, if small business can’t survive, there’s going to be challenges. It could be a tipping point.”

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cjnbnews@pattisonmedia.com

On Twitter: @battlefordsNOW