The Globe and Mail reports in its Monday, Sept. 26, edition that Modus Research's soon-to-be released survey of Canadian business shows that rising costs from inflation are about to take a deep bite out of private-sector spending in key areas that promote future economic expansion. The Globe's David Parkinson writes that rising costs from inflation are about to take a deep bite out of private-sector spending in key areas that promote future economic expansion. The polling of 600 businesses -- conducted in late August and early September -- found that 70 per cent of companies expect that inflation will prompt them to cut costs over the next year. Nearly half said they intend to reduce investment on new equipment, 35 per cent said they plan to cut research and development. One-third said they would cut back on hiring. It suggests that high inflation is becoming embedded into companies' future plans. The Bank of Canada has repeatedly warned that once higher inflation expectations become entrenched in business and consumer expectations, it becomes much more difficult to bring down to size. The Modus numbers hint at what we might see in the BOC's own quarterly business outlook survey, which comes out Oct. 17.