The Financial Post reports in its Tuesday, Oct. 18, edition that new surveys from the Bank of Canada show most consumers and businesses expect Canada to enter a recession, though their views on inflation in the short run are diverging. A Canadian Press dispatch to the Post reports that third quarter business outlook and consumer expectations surveys, released Monday, showed consumers have become more pessimistic about inflation in the short run, while business expectations for inflation have eased. With inflation well above the bank's 2-per-cent target, the BOC is monitoring how inflation expectations develop amid concerns that elevated expectations could feed into even higher prices and wages. The annual inflation rate was 7 per cent in August, the most recent available number. Statistics Canada is set to release September inflation data on Wednesday. BMO economist Sal Guatieri says while the widespread perception among businesses that Canada is entering a recession is bad news, their expectations for inflation are headed in the right direction. He says, "The good news, especially for the Bank of Canada is those same firms are seeing moderation in price and wage pressures."