It distorts and confuses the information and incentives that consumers, entrepreneurs, savers and investors rely on to make their economic  3 See Bank of Canada, “Box 3: Scenario with a wage-price spiral,” Monetary Policy Report (July 2022): 25. -9decisions. That means workers and businesses have less to show for their work, and it’s harder for everyone to plan for the future.
Plain and simple, high inflation feeds frustration and creates a sense of helplessness. We want an economy where households and businesses don’t have to guess where inflation is going to be. We want an economy where the money Canadians earn from their hard work keeps its value. We want an economy where businesses have the confidence to invest.