Canadian manufacturers key to fighting inflation, says CME

Canada’s federal government must make increasing manufacturing output a priority in the fight against high inflation, the Canadian Manufacturers & Exporters (CME) has said.

In a Sept. 7 press release, Ottawa-based CME officials announced the association’s support for the Bank of Canada’s fight against record inflation and said Canadian manufacturers are well positioned to play. a “key role” in helping the bank and the federal government achieve this goal.

“The Bank of Canada is not alone in this fight,” said CME President and CEO Dennis Darby. “Manufacturers also have an important role to play. We make the goods consumers want. When we cannot meet their demand, prices and inflation rise. If we are given the tools we need, we can increase our production and lower inflation.

CME officials recently met with the Bank of Canada and the federal government, Darby said, and urged both sides to help the manufacturing industry tackle labor shortages and supply chain disruptions. ‘supply. Mitigating these dual challenges is key to helping the sector increase production, lower prices for goods and ultimately reduce inflation, the association explained.

Higher interest rates dampen inflation by reducing demand for goods and services and slowing the economy.

Along with the Bank of Canada’s actions, policymakers must now do all they can to build a more productive economy with greater capacity to deliver goods and services to Canadians, MEC said.

Increasing the supply side of the economy is not only fundamental for growth, but creates a more inflation resistant economy.

“We want to strengthen our sector and see it grow so it can continue to drive our economy, improve prosperity and build long-term resilience against future shocks,” Darby said. “Resolving immigration backlogs, streamlining the Temporary Foreign Worker Program, investing in our transportation and trade infrastructure are all musts.