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Bank of Montreal
Symbol BMO
Shares Issued 729,529,582
Close 2024-10-24 C$ 129.34
Market Cap C$ 94,357,356,136
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Globe says BMO, rivals hear inflation still feels high

2024-10-24 08:32 ET - In the News

Also In the News (C-BNS) Bank of Nova Scotia
Also In the News (C-CM) Canadian Imperial Bank of Commerce (CIBC)
Also In the News (C-NA) National Bank of Canada
Also In the News (C-RY) Royal Bank of Canada
Also In the News (C-TD) Toronto-Dominion Bank

The Globe and Mail reports in its Thursday edition that Canada's inflation rate is now below 2 per cent. The Globe's Jason Kirby writes that a consumer survey, however, indicates people still feel inflation is high. One reason for this perception may be the increasing requests for tips, especially at payment terminals, coupled with businesses that previously did not expect gratuities seeking them now. The surge in inflation and the rise in tipping stemmed from pandemic-related disruptions, which affected supply chains. During lockdowns, people were encouraged to tip generously to support workers facing reduced restaurant traffic. Now, while inflation has eased, the practice of "tip-flation," fuelled by guilt and technology, remains difficult to change. University of Guelph associate food professor Mike von Massow said, "Tipping isn't driving inflation rates, but it is affecting people's perception of prices and that's become very important as inflation has come down." Suggested tips at payment terminals have increased over the years. While options were typically 10 per cent, 15 per cent or 20 per cent, some restaurants and coffee shops now offer tips of 15 per cent, 20 per cent, 25 per cent, or even 30 per cent.

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