BOC Says Oil Price Shock Will Push Near-Term Inflation Higher

The Bank of Canada’s second-in-command reiterated that policymakers see higher oil prices boosting inflation in the coming months, and said the central bank is reviewing how it communicates core measures of price pressures to the public.

Senior Deputy Governor Carolyn Rogers said the war in Iran and subsequent oil shock will “push inflation higher in the near-term,” but repeated that the central bank needs to “guard against” higher petroleum costs spreading to other goods and services and becoming “ongoing, persistent inflation.”