Economists See Oil Spike Costing Canada Jobs, Raising Inflation

Economists are boosting their forecasts for Canadian inflation and unemployment as the war in Iran drives up oil prices and heightens global instability.

Analysts in a Bloomberg survey see the consumer price index rising at a 2.4% annual pace this year, up from 2.2% in last month’s survey. Unemployment is expected to average 6.7% in 2026, compared with 6.5% previously, while the economy is seen expanding 1.1%, down from 1.2%.