1 in 3 Ontario businesses set to raise prices amid new inflation numbers, survey says

With inflation rising to a staggering 1.8 per cent today, Ontario businesses are preparing to raise costs.

A recent survey from Merchant Growth — a national small-business oversight group — found that, amid today’s news, numerous businesses are now set to raise prices to keep their heads above water.

While foundational metrics are likely to be affected first, such as the cost of oil and routine services, small businesses are still feeling the pressure.

According to Merchant Growth’s survey, roughly one in three Ontario businesses has stated intent to raise prices over the next six months.

In the face of this new increase, businesses that firmly decided not to pass the burden cost onto customers during previous inflation raises are now left with no choice, and are now buckling under economic pressure.

Out of the 53 per cent that didn’t raise costs in previous years, 37 per cent are now left with no choice but to do so.

“After months of absorbing those pressures and cutting back where they can, pricing is often one of the few tools left to keep the business stable,” said Merchant Growth’s CEO, David Gens, in an official statement.

Beyond inflation, 50 per cent of businesses surveyed said tariffs have put a major dent in any feasible growth in profit margins, further adding to economic strain.

As a result, 37 per cent of all respondents noted that, alongside raising prices, they will be pausing any hiring incentives.

Looking ahead, authorities like Gens predict a slow and timid spring for small Ontario businesses, stating, “More entrepreneurs are relying on short-term financing or personal credit to get through the slower months, which speaks to how cautious the small business environment still is heading into the spring.”