Costs remain top of mind for Alberta businesses, according to a recent survey.

Conducted from July 2 to August 6, 2025, the latest results from the Canadian Survey on Business Conditions indicate that half of the Alberta respondents think inflation will be an obstacle for their business or organization over the next three months with a fifth identifying it as the most challenging obstacle.

Combining the cost-related obstacles* together, about two-thirds of Alberta respondents say costs will be an obstacle over the next three months (it was 70% the previous quarter) with a third citing a cost-related issue as the most challenging obstacle they are facing.

The concern over inflation and the cost of doing business may, at first glance, seem odd given that the headline inflation rate in Alberta has averaged just 2% (year-over-year) since January.

It makes more sense when you consider that the inflation rate we hear about refers to a basket of specific consumer goods and services rather than the things for which businesses tend to pay such as machinery, chemicals and packaging materials. One measure of the latter is the Industrial Product Price Index which has increased by an average of 3.3% (year-over-year) since January.

And, as is the case with consumer inflation, past spikes in operating costs (the monthly Industrial Product Price Index grew by an average of 13.4% in 2021 and 2022) mean that today’s prices are much higher than a few years ago even though the rate of increase has slowed.

How much of the concern regarding costs is related to tariffs is hard to determine, but the survey did find that 4 in 10 Alberta businesses say the U.S. tariffs are having a negative impact on them and the same number say the Canadian tariffs are having a negative impact.

Also interesting is the share of businesses worried about labour availability with about a third of Alberta respondents citing this an obstacle over the coming three months.

Recruiting/retaining skilled employees was cited by 9% of Alberta respondents as their most challenging obstacle. If we add in the “shortage of labour force” obstacle, this rises to 13%. This suggests that finding workers with the right skills, in the right place and willing to take the job on offer, remains an issue despite the upward trajectory of unemployment in Alberta and the country as a whole.    

*Cost-related obstacles consist of inflation; cost of inputs; interest rates and debt costs; cost of insurance; cost of real estate, leasing or property taxes; and transportation costs

Answer to the previous trivia question: Kindergarten was coined by educator Friedrich Froebel in the 1840s to describe his "Children's Garden" (Kinder-Garten) for early childhood education.

Today’s trivia question: What were workers in the Toronto Typographical Union asking for when they went on strike in 1872?