Canadian businesses have ‘cushion’ to absorb costs, limit inflation: report

A new report from CIBC Capital Markets suggests that Canadian businesses currently maintain a financial cushion due to historically high profit margins. Economists believe this buffer will allow companies to absorb rising costs rather than passing them on to consumers through price hikes. While inflation remains a concern, the report indicates that the current soft economic climate makes it increasingly difficult for retailers and wholesalers to continue raising prices for customers.