Small business confidence steadies as B.C. inflation cools sharply

Small business confidence in Canada was roughly unchanged in January, while B.C. inflation cooled to 1.7% year‑over‑year in December.

Small business confidence was roughly unchanged in January, based on the Canadian Federation of Independent Business readings. The national 12-month outlook held at 59.5 points, the highest since November 2024, while the three-month index remained at 52.8 points after a year below 50. In British Columbia, the index eased from 67.4 in December to 56.7 in January, with short-term expectations falling back into negative territory. At the same time, B.C. consumer inflation cooled sharply to 1.7 per cent year-over-year in December. Key facts: - National 12-month business outlook remained at 59.5 points, above the 50 mark that signals net optimism. - The three-month index was 52.8 points; professional and business services scored 64.9 and health and education 61.3, while manufacturing was lower at 53.0. - In B.C., the business index fell from 67.4 to 56.7; short-term expectations dropped to 46.3 from 57.1; 12% of firms reported plans to hire full-time and 16% reported plans to cut full-time staff. - B.C. inflation was 1.7% year-over-year in December, down from 2.0% in November and below the 2.4% national reading. - Food price inflation in B.C. rose 5.2% year-over-year in December; meat increased 6.8%, fish and seafood 8.9%, and coffee inflation accelerated from 23% to 32%. - Energy prices in B.C. fell 9.2% year-over-year in December, with gasoline down 13.7%; shelter costs rose 1.9%. Summary: The data show cautiously improved sentiment at a 12-month horizon alongside more mixed short-term views and notable sector differences, and B.C. registered a sharp easing in headline inflation even as food costs accelerated. Undetermined at this time.