Canada Inflation Forecasts Revised Upward Amid Rising Oil Prices

Economists are revising their forecasts for Canada inflation upwards, predicting that prices won't return to the Bank of Canada's 2% target until the third quarter of next year.

The median forecast in a Bloomberg survey puts consumer price index at 3% over the next six months, a 0.6 percentage point increase from last month's survey.

This higher-for-longer outlook coincides with rising oil prices stemming from the conflict in the Middle East. Bank of Canada Governor Tiff Macklem has warned that persistently elevated gasoline prices will likely keep headline inflation above target and increase the risk of broader price pressures.